Back to top

Stitch Fix (SFIX) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Stitch Fix (SFIX - Free Report) closed the most recent trading day at $27.37, moving -1.16% from the previous trading session. This change lagged the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.5%.

Coming into today, shares of the online clothing styling service had lost 1.28% in the past month. In that same time, the Retail-Wholesale sector gained 4.73%, while the S&P 500 gained 2.62%.

SFIX will be looking to display strength as it nears its next earnings release. On that day, SFIX is projected to report earnings of -$0.01 per share, which would represent a year-over-year decline of 111.11%. Meanwhile, our latest consensus estimate is calling for revenue of $394.58 million, up 24.58% from the prior-year quarter.

SFIX's full-year Zacks Consensus Estimates are calling for earnings of $0.22 per share and revenue of $1.55 billion. These results would represent year-over-year changes of -43.59% and +26.55%, respectively.

Any recent changes to analyst estimates for SFIX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SFIX is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that SFIX has a Forward P/E ratio of 126.69 right now. This represents a premium compared to its industry's average Forward P/E of 13.82.

It is also worth noting that SFIX currently has a PEG ratio of 5.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.36 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Stitch Fix, Inc. (SFIX) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in