Stitch Fix (SFIX) closed at $23.29 in the latest trading session, marking a -1.81% move from the prior day. This change was narrower than the S&P 500's daily loss of 3.39%. At the same time, the Dow lost 3.58%, and the tech-heavy Nasdaq lost 3.1%.
Prior to today's trading, shares of the online clothing styling service had lost 1.37% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 3.22% and the S&P 500's loss of 4.8% in that time.
SFIX will be looking to display strength as it nears its next earnings release, which is expected to be March 9, 2020. In that report, analysts expect SFIX to post earnings of $0.06 per share. This would mark a year-over-year decline of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $452.96 million, up 22.33% from the year-ago period.
SFIX's full-year Zacks Consensus Estimates are calling for earnings of $0.08 per share and revenue of $1.92 billion. These results would represent year-over-year changes of -77.78% and +21.5%, respectively.
It is also important to note the recent changes to analyst estimates for SFIX. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SFIX is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note SFIX's current valuation metrics, including its Forward P/E ratio of 316.27. For comparison, its industry has an average Forward P/E of 11.25, which means SFIX is trading at a premium to the group.
Also, we should mention that SFIX has a PEG ratio of 21.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.05 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report
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