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Stitch Fix (SFIX) Stock Sinks As Market Gains: What You Should Know
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Stitch Fix (SFIX - Free Report) closed at $23.70 in the latest trading session, marking a -0.42% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 0.08%.
Heading into today, shares of the online clothing styling service had gained 15.25% over the past month, outpacing the Retail-Wholesale sector's gain of 3.97% and the S&P 500's gain of 5.93% in that time.
SFIX will be looking to display strength as it nears its next earnings release, which is expected to be March 11, 2019. On that day, SFIX is projected to report earnings of $0.05 per share, which would represent a year-over-year decline of 28.57%. Meanwhile, our latest consensus estimate is calling for revenue of $365.28 million, up 23.44% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.16 per share and revenue of $1.51 billion. These totals would mark changes of -58.97% and +23.22%, respectively, from last year.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SFIX currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that SFIX has a Forward P/E ratio of 150.09 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.94.
Meanwhile, SFIX's PEG ratio is currently 6.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.34 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Stitch Fix (SFIX) Stock Sinks As Market Gains: What You Should Know
Stitch Fix (SFIX - Free Report) closed at $23.70 in the latest trading session, marking a -0.42% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 0.08%.
Heading into today, shares of the online clothing styling service had gained 15.25% over the past month, outpacing the Retail-Wholesale sector's gain of 3.97% and the S&P 500's gain of 5.93% in that time.
SFIX will be looking to display strength as it nears its next earnings release, which is expected to be March 11, 2019. On that day, SFIX is projected to report earnings of $0.05 per share, which would represent a year-over-year decline of 28.57%. Meanwhile, our latest consensus estimate is calling for revenue of $365.28 million, up 23.44% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.16 per share and revenue of $1.51 billion. These totals would mark changes of -58.97% and +23.22%, respectively, from last year.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SFIX currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that SFIX has a Forward P/E ratio of 150.09 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.94.
Meanwhile, SFIX's PEG ratio is currently 6.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.34 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.