29.20 -0.10 (-0.34%)
After hours: 7:27PM EDT
|Bid||29.15 x 800|
|Ask||29.20 x 800|
|Day's Range||28.83 - 30.38|
|52 Week Range||16.05 - 52.44|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||64.97|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||36.63|
VC Daily: Peloton Faces a Music Rap | Dueling Models at Stitch Fix and Glossier Good day. Adding entertainment content to your app can make for some contentious dealings. Peloton Interactive Inc. is a popular fitness startup that sells stationary bicycles for more than $2,000, plus various accessories.
Sally Beauty's (SBH) transformation plans and loyalty program are expected to boost growth in the near future. However, dismal margin is likely to persist in fiscal 2019.
Dollar Tree (DLTR) gains from its store-expansion initiatives. These efforts are also driving the company's comparable store sales.
Investors looking for tech stocks that can rise faster than the rebounding group of FAANGs may consider three smaller e-commerce players that are already leading the market and are poised to outperform longterm, according to some market watchers.
The subscription fashion seller delivered the quarter investors wanted to see, while the athletic and outdoor gear retailer showed weakness.
Here are some of the companies with shares expected to trade actively in Wednesday’s session. Stock movements noted by ticker reflect movements during regular trading hours; premarket trading is specified separately.
Shares of Stitch Fix (NASDAQ:SFIX) soared on Tuesday after the personalized e-commerce retailer reported second-quarter numbers that smashed expectations across the board. Management also hiked the fiscal 2019 guide to far above consensus levels. The double whammy of good news was celebrated by investors, and SFIX stock popped more than 25% in response.Source: Stitch Fix To be sure, this is a recovery rally in SFIX stock. About six months ago, this was a $50 stock. Back-to-back disappointing quarters in late 2018 depressed investor sentiment and led to a bunch of selling. SFIX stock dropped to $16 in December. Now, thanks to financial market stabilization and strong second quarter numbers, SFIX stock is clawing its way back. There are two ways to look at this recovery rally. On one hand, you have a momentum stock that has more than doubled in just over two months and is technically overbought. On the other hand, you have a growth stock that is still more than 30% off its all-time highs and remains fundamentally undervalued.Which way should you look at it? The latter. Sure, SFIX stock has come very far, very fast. But, in the bigger picture, Stitch Fix is still in the early innings of changing the way the retail world works. As the company continues to pioneer this change over the next several years, the customer base, revenues, margins, and profits will all grow by leaps and bounds. That growth will power SFIX stock higher.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dark Horse Stocks That Deserve Your Attention in 2019 In other words, this is a long-term winner clawing its way back. How much higher can SFIX stock go? My numbers suggest a 2019 price target near $40, and a long-term price target upwards of $60. Thus, at $30 and change, SFIX stock still has more upside left in both the medium and long term. Strong Q2 Numbers Underscore Secular Growth NarrativeIn many ways, the post-Q2 pop in SFIX stock is a byproduct of the post-Q1 drop.Back in early December, Stitch Fix reported strong Q1 numbers that were accompanied by a weak Q2 guide. Specifically, Stitch Fix said that the client base wouldn't grow during the holiday season as the company pulled ad spend during a seasonally low add quarter. They also said that EBITDA margins would get hit hard by inventory clearing and strategic investments. SFIX stock dropped big in response.I said buy the dip because the holiday-quarter headwinds were temporary and overstated. The Q2 report affirmed that they were both. It was a big double beat quarter that included client base growth, accelerated revenue growth, big gross margin expansion, and much bigger EBITDA margins than anyone expected (5.2% EBITDA margins versus a guide that had pegged EBITDA margins below 3%). Perhaps more importantly, management hiked its full-year 2019 revenue and profit guides in a big way to account for better-than-expected growth and margin performance.In other words, all those headwinds that plagued SFIX stock in late 2018 (slowing growth and falling margins) are reversing course. As they reverse course, the long term bull thesis is gaining clarity.That long-term bull thesis is fairly simple. Stitch Fix is dramatically improving the shopping model by leveraging data, technology, personalization, and curation to improve customer outcomes, lower costs, boost convenience, and save time. Given these consumer advantages, it's only a matter of time before the Stitch Fix model becomes widely adopted throughout the global apparel market. That market measures $1.7 trillion globally. Revenues last year at Stitch Fix were around $1.2 billion.Thus, this is an innovative, big-growth company with secular advantages and a huge opportunity in front of it. Investors are starting to buy back into that bull thesis. As they do, SFIX stock will only head higher. Long-Term Upside Is PromisingThe math underlying SFIX stock is pretty simple.This is a $1.2 billion revenue company attacking a $1.7 trillion global market. Growth rates are north of 25% and not slowing. The customer base continues to grow at a big 15%-plus year-over-year rate. Gross margins are trending towards 45%. Opex rates aren't falling, yet, but they should head towards management's long term target of 35% within the next several years.Overall, given healthy fundamentals and the huge opportunity, Stitch Fix will likely remain a 15%-plus customer grower with 20%-plus revenue growth rates over the next several years. Gross margins will stabilize around 45%. Opex rates will fall towards 35%.Putting all that together, I think a reasonable EPS target for Stitch Fix by fiscal 2025 is $3.15. Based on a growth average 20 forward multiple, that equates to a fiscal 2024 price target for SFIX stock of $63. Discounted back by 10% per year, that equates to a fiscal 2019 price target of nearly $40.We are halfway through fiscal 2019, and SFIX stock is still south of $35. Thus, upside in both the medium and long term looks healthy from here. Bottom Line on SFIX StockIn the big picture, Stitch Fix is in the early stages of pioneering a new and improved shopping model across the global retail apparel market. That market is huge. Stitch Fix is not huge. Thus, the company has a tremendous opportunity in front of it to keep growing at a big rate for a lot longer. When investors believe in that long term narrative, SFIX stock rises. When they don't, SFIX stock drops. * The 10 Best Stocks to Buy for the Bull Market's Anniversary A strong beat-and-raise second quarter gives investors plenty of reason to believe in the long term narrative. This bullish sentiment will hang around for a little while longer. So long as it does, SFIX stock will stay on an uptrendAs of this writing, Luke Lango was long SFIX. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy Under 15x Earnings * 7 Dark Horse Stocks That Deserve Your Attention in 2019 * 5 Disruptive Technologies That Are Moving Too Fast Compare Brokers The post Why the Big Rally in Stitch Fix Stock Isn't Over Yet appeared first on InvestorPlace.
Inc. jumped 25% on Tuesday, as the online fashion subscription service’s latest quarterly results assuaged investor concerns about customer growth. Stitch Fix defines active clients as those who have received a shipment or “Fix” in the previous 12-month period. The results beat internal and Wall Street projections.
The stylish apparel subscription service beat its own best sales estimates and reached 3 million active clients during its most-recent quarter.
Stitch Fix stock soared to a five-month high as the online provider of stylized apparel services posted quarterly results that beat estimates, as did its outlook for the current quarter.
slide when several countries grounded the company's 737 MAX 8 after the plane model's second fatal crash in six months. jumped after the subscription fashion service topped analysts' earnings and sales forecast in its fiscal second quarter, and issued a strong third-quarter outlook. fell after the sporting goods retailer beat Wall Street's fourth-quarter earnings forecast but reported falling sales.
Stocks continued their recent momentum from Monday, again rallying higher on Tuesday. Companies like Boeing (NYSE:BA) remain on shaky ground, while plenty of other big movers drew our attention. Let's look at some top stock trades for Wednesday. Top Stock Trades for Tomorrow 1: Stitch FixShares of Stitch Fix (NASDAQ:SFIX) are ripping on Tuesday, up more than 25% after better-than-expected earnings. It's hard to be disappointed with a move like that, but given how far off its highs this one finished and it does cause some concern.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dark Horse Stocks That Deserve Your Attention in 2019 There's a big short interest in this one, so it's totally possible it starts to scream higher on Wednesday. If it loses Tuesday's lows though, a drop down to $32 is likely. Over this $34.50-ish area -- which has been notable but is also the 50% retracement mark for the 52-week range -- and SFIX could retest Tuesday's high.Above it and a short-squeeze could fuel it higher to fill that gap up near $44. Top Stock Trades for Tomorrow 2: MomoUp more than 12% on Tuesday post-earnings and Momo (NASDAQ:MOMO) is no slouch either. However, like SFIX we could have seen a stronger finish to the day.MOMO couldn't stay above its 200-day moving average, but on the plus side, it's over the $34 to $35 range, a key area over the past year. Plus, it hurdled its 38.2% Fibonacci retracement level near $34.25. If it can continue higher, look for Momo to clear the 200-day and perhaps challenge $40.On the downside, look to see that $34 to $35 holds as support. Top Stock Trades for Tomorrow 3: Coupa SoftwareThis one has had some strange moves lately, with Coupa Software (NASDAQ:COUP) closing off the lows but ultimately lower by 3% on the day. Its earnings weren't able to break it out of the recent range, between $89 to $97. A close outside of this range likely creates a momentum trade in that direction.Meaning, a close below range support sends it lower and a close above could cause a breakout. Let's wait until we have a more definitive direction rather than guess on which way it will go. Top Stock Trades for Tomorrow 4: Dick's Sporting GoodsDick's Sporting Goods (NYSE:DKS) is crumbling on Tuesday, down 11% after disappointing investors with its earnings report.While the 50-week moving average is stepping up as support (not shown on the daily chart above) at $34.58, this one is looking kind of ugly right here. The stock knifed right through all of its major daily moving averages and could have more downside left if the stock doesn't maintain Tuesday's lows. If the 61.8% Fibonacci doesn't supports the stock near $34, this one could sink to $32.50.On a rally, look to see whether DKS can push through its moving averages or if this level acts as resistance. For now, more downside is the risk. Top Stock Trades for Tomorrow 5: VisaMaking new 52-week highs on the day is Visa (NYSE:V). This silent winner was able to push over a key level at $150. Now bulls have to make sure it stays above this mark. A dip and hold to $150 is a great buying opportunity in this sense. * The 10 Best Stocks to Buy for the Bull Market's Anniversary Below this mark and uptrend support and/or the 21-day moving average becomes the next buy-the-dip spot. If it fails, $142 to $144 is likely. Just remember to keep it simple.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long V. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy Under 15x Earnings * 7 Dark Horse Stocks That Deserve Your Attention in 2019 * 5 Disruptive Technologies That Are Moving Too Fast Compare Brokers The post 5 Top Stock Trades for Wednesday: SFIX, COUP, MOMO, DKS appeared first on InvestorPlace.