Strength Seen in Stitch Fix (SFIX): Can Its 20.2% Jump Turn into More Strength?
Stitch Fix (SFIX) shares soared 20.2% in the last trading session to close at $8.56. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.9% gain over the past four weeks.
Stitch Fix is benefiting from its Freestyle drive, which offers quite a distinct shopping experience. The company also remains on track with its efforts to boost assortments as well as improve client experience. Continued growth in the active client base has been a significant upside for Stitch Fix.
This online clothing styling service is expected to post quarterly loss of $0.60 per share in its upcoming report, which represents a year-over-year change of -415.8%. Revenues are expected to be $489.36 million, down 14.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Stitch Fix, the consensus EPS estimate for the quarter has been revised 4.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SFIX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Stitch Fix belongs to the Zacks Retail - Apparel and Shoes industry. Another stock from the same industry, Designer Brands (DBI), closed the last trading session 3.5% higher at $18.83. Over the past month, DBI has returned 30.8%.
For Designer Brands , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.53. This represents a change of -5.4% from what the company reported a year ago. Designer Brands currently has a Zacks Rank of #3.
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