Stitch Fix (SFIX) closed the most recent trading day at $22.99, moving -0.99% from the previous trading session. This change lagged the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.91%.
Heading into today, shares of the online clothing styling service had gained 19.38% over the past month, outpacing the Retail-Wholesale sector's loss of 1.18% and the S&P 500's loss of 0.61% in that time.
Wall Street will be looking for positivity from SFIX as it approaches its next earnings report date. 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.03 per share and revenue of $1.91 billion. These totals would mark changes of -91.67% and +21.33%, respectively, from last year.
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 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 89.89% lower. SFIX is currently a Zacks Rank #3 (Hold).
Investors should also note SFIX's current valuation metrics, including its Forward P/E ratio of 855.47. Its industry sports an average Forward P/E of 12.15, so we one might conclude that SFIX is trading at a premium comparatively.
Also, we should mention that SFIX has a PEG ratio of 28.52. 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. SFIX's industry had an average PEG ratio of 1.33 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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