Stitch Fix (SFIX) closed at $23.77 in the latest trading session, marking a -0.17% move from the prior day. This move lagged the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 1.01%.
Coming into today, shares of the online clothing styling service had gained 27.53% in the past month. In that same time, the Retail-Wholesale sector gained 0.67%, while the S&P 500 gained 1.38%.
SFIX will be looking to display strength as it nears its next earnings release. On that day, SFIX is projected to report earnings of -$0.06 per share, which would represent a year-over-year decline of 160%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $441.04 million, up 20.42% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 89.89% lower. SFIX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SFIX is currently trading at a Forward P/E ratio of 877.21. This represents a premium compared to its industry's average Forward P/E of 12.62.
We can also see that SFIX currently has a PEG ratio of 29.24. 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. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.38 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 28, putting it in the top 11% 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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Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report
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