CRI Should I Buy
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Carter's Inc (CRI) is not a strong buy at the moment for a beginner investor seeking long-term opportunities. While the company shows some signs of a turnaround, the macroeconomic uncertainties, tariff impacts, and potential store closures weigh heavily on its outlook. The lack of strong trading signals and mixed sentiment from analysts further support a hold recommendation.
The MACD is positive and expanding, indicating a mild bullish trend. However, the RSI is neutral at 44.429, and moving averages are converging, suggesting no clear directional momentum. The stock is trading near its pivot level of 34.734, with support at 34.006 and resistance at 35.462.
Revenue, net income, and EPS showed YoY growth in Q4 2025, indicating some operational improvements. Analysts have highlighted a potential turnaround story under the new CEO, with some upgrades and price target increases.
Analysts remain cautious due to macroeconomic uncertainties, and insider and hedge fund activity are neutral.
In Q4 2025, revenue increased by 7.65% YoY to $925.45 million, net income rose by 4.63% YoY to $63.03 million, and EPS grew by 4.09% YoY to 1.78. However, gross margin dropped to 43.24%, down 9.56% YoY, indicating cost pressures.
Analysts are mixed on Carter's. Citi and Monness Crespi upgraded the stock to Buy with price targets of $50 and $45, respectively, citing turnaround potential. UBS raised its price target to $40 but maintained a Neutral rating. Needham initiated coverage with a Hold rating, expressing caution due to macro uncertainties.
