Citi Trends (NASDAQ: CTRN) is a value-priced retailer of urban fashion apparel. Offerings include family clothing, shoes, accessories and home decor items. Goods are sold at 20-60% off department and specialty store prices. The company operates 330 stores in the Southeast, Mid-Atlantic and Midwest regions and the state of Texas. Ross Stores (NASDAQ: ROST) and TJX Companies (NYSE: TJX) are major competitors.

The firm pleased investors late last month, when it reported Q4 EPS of 59 cents and revenues of $134.6 million. The Street had been expecting 44 cents and $136 million. Management also guided FY09 EPS to $1.10-$1.15 ($1.00 consensus). Citi Trends said it expected to increase selling square footage by at least 15% this year.

The share price popped on the news and has since been consolidating the gain in a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys," one "buy" and four "holds." Analysts expect a 22% growth rate through the next year. The CTRN PEG ratio (0.99), Price to Sales ratio (0.64), Price to Book ratio (2.02) and Price to Cash Flow ratio (10.40) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $10.76 and $45.15. A stop-loss of $16.20 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.