Shares of Children's Place Inc. (NASDAQ:PLCE) were trending higher since September, but the stock has recently been hitting a resistance line. If the stock breaks through this level, a breakout could soon occur. Read more to learn how to profit from this trade.Children's Place Inc. (PLCE) is a specialty retailer that sells accessories, footwear, and other items for children. The company has over a thousand stores in North America and also sells through its website and wholesale. It reaches more than a dozen other countries, with franchise partners operating stores, shops, or e-commerce sites.
The company has undertaken growth efforts such as enhancing its digital capabilities, augmenting its supply chain, and improving its financial flexibility. PLCE had a strong first-quarter, driven by a favorable response towards its product assortment, higher price realization, and consumers spending stimulus checks.
From a liquidity standpoint, the company has a current ratio of 0.9, which indicates it may not be able to cover short-term obligations. In addition, the company has a high debt-to-equity ratio of 4.1.