Stitch Fix (SFIX) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.
Retail stocks including Gap (NYSE: GPS), Nordstrom (NYSE: JWN), Stitch Fix (NASDAQ: SFIX), Torrid Holdings (NYSE: CURV), Children's Place (NASDAQ: PLCE), and Wayfair (NYSE: W) were all moving higher today after Walmart (NYSE: WMT) delivered better-than-expected results in its second-quarter earnings report. As the biggest retailer in the world, Walmart has an outsized influence on other retail stocks, and it's also one of the first brick-and-mortar retailers to report earnings, so its results are seen as a harbinger for its smaller peers.
Shares of Stitch Fix (NASDAQ: SFIX) outperformed a rising market this week, as the stock jumped 13% through Thursday trading compared to a 1.5% increase in the wider market, according to data provided by S&P Global Market Intelligence. There were a few encouraging developments this week that, while not specific to Stitch Fix's business, might mean that investors were too hasty in abandoning this apparel stock through most of 2022. Stitch Fix still faces major hurdles in fixing its business.