Citi Trends, Inc. (NASDAQ: CTRN) is one of the Best Micro-Cap Stocks to Invest in According to Analysts.
On December 2, the company reported third-quarter results, with revenue of more than $197 million, up 10% from revenue in the same period last year and beating market expectations by nearly $10 million. In terms of guidance, the company expects fourth-quarter same-store sales to reach a high-single-digit increase and gross margin to be between 40% and 41%.
On December 3, DA Davidson analyst Michael Baker raised the price target on Citi Trends, Inc. (NASDAQ: CTRN) stock from $43 to $52 and maintained a Buy rating on the shares. In a note to investors, the analyst opined that there is a long way to go in this commodity-driven turnaround as the company’s momentum in high single-digit to double-digit compensation continues through the holidays. Baker further added that inventory was fresh, differentiated and on-trend, and a high fixed cost structure meant higher-than-average incremental margins.
Citi Trends, Inc. (NASDAQ: CTRN) operates as a value retailer of fashion apparel, accessories and home goods.
While we recognize CTRN’s potential as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for a hugely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the reshoring trend, check out our free report on the best AI stock in the short term.
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