(RET) Reitmans Canada - Ratings and Ratios

Reitmans (Canada) Limited is a Canadian retailer specializing in womens apparel, operating under the brand names Reitmans, Penningtons, and RW&CO. With a presence in both physical retail stores and e-commerce, the company caters to a diverse customer base. Founded in 1926 and headquartered in Montreal, Reitmans has established itself as a long-standing player in the Canadian apparel retail industry.

From a market perspective, Reitmans is classified under the Apparel Retail sub-industry according to the GICS classification. The companys stock is listed as a common stock with the ticker symbol RET. Given its market capitalization of $115.79M CAD, Reitmans is considered a relatively smaller-cap stock in the retail sector.

Analyzing the provided technical data, it is evident that Reitmans stock price has been relatively stable, with the last price recorded at $2.60. The stocks short-term moving averages (SMA20 and SMA50) indicate a positive trend, with SMA20 at $2.56 and SMA50 at $2.39, suggesting a potential upward momentum. However, the SMA200 at $2.61 is slightly above the current price, indicating a possible resistance level. The Average True Range (ATR) of 0.08, equivalent to 3.16%, suggests moderate volatility.

From a fundamental analysis perspective, Reitmans Price-to-Earnings (P/E) ratio stands at 10.32, which is relatively moderate compared to other retail stocks. The Return on Equity (RoE) of 4.18% indicates that the company is generating returns for its shareholders, albeit at a modest level. The absence of a forward P/E ratio makes it challenging to gauge market expectations for future earnings.

Forecasting Reitmans stock performance based on the available technical and fundamental data, a potential scenario could unfold as follows: Given the current trend indicated by the short-term moving averages and the relatively moderate P/E ratio, there is a possibility that the stock could experience an upward movement in the short term. However, the resistance level indicated by the SMA200 and the moderate volatility suggested by the ATR should be closely monitored. If the company can maintain its current RoE and potentially improve its earnings, it may positively impact the stock price. Therefore, a potential target price could be around $2.80-$3.00, representing a 7-15% increase from the current price. Nonetheless, this forecast is contingent upon various market and company-specific factors, and it is essential to continue monitoring both technical and fundamental indicators for any changes.