Stitch Fix (SFIX) closed the most recent trading day at $21.18, moving +0.76% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.24%.
Coming into today, shares of the online clothing styling service had lost 8.73% in the past month. In that same time, the Retail-Wholesale sector gained 0.25%, while the S&P 500 gained 4.31%.
SFIX will be looking to display strength as it nears its next earnings release, which is expected to be December 9, 2019. In that report, analysts expect SFIX to post earnings of -$0.06 per share. This would mark a year-over-year decline of 160%. Meanwhile, our latest consensus estimate is calling for revenue of $441.04 million, up 20.42% from the prior-year quarter.
SFIX's full-year Zacks Consensus Estimates are calling for earnings of $0.03 per share and revenue of $1.91 billion. These results would represent year-over-year changes of -91.67% and +21.33%, respectively.
Any recent changes to analyst estimates for SFIX should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SFIX is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that SFIX has a Forward P/E ratio of 774.42 right now. Its industry sports an average Forward P/E of 12.59, so we one might conclude that SFIX is trading at a premium comparatively.
We can also see that SFIX currently has a PEG ratio of 25.81. 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 was holding an average PEG ratio of 1.34 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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