Stitch Fix (SFIX) closed the most recent trading day at $19.64, moving +0.98% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.49%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.8%.
Coming into today, shares of the online clothing styling service had lost 0.1% in the past month. In that same time, the Retail-Wholesale sector gained 3.2%, while the S&P 500 gained 3%.
Wall Street will be looking for positivity from SFIX as it approaches its next earnings report date. This is expected to be October 1, 2019. On that day, SFIX is projected to report earnings of $0.04 per share, which would represent a year-over-year decline of 76.47%. Meanwhile, our latest consensus estimate is calling for revenue of $432.10 million, up 35.75% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for SFIX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SFIX is currently a Zacks Rank #3 (Hold).
In terms of valuation, SFIX is currently trading at a Forward P/E ratio of 72.42. Its industry sports an average Forward P/E of 10.85, so we one might conclude that SFIX is trading at a premium comparatively.
Investors should also note that SFIX has a PEG ratio of 3.22 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.21 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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