In the latest trading session, Stitch Fix (SFIX - Free Report) closed at $20.57, marking a -0.53% move from the previous day. This change lagged the S&P 500's 1.21% gain on the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 1.35%.
Heading into today, shares of the online clothing styling service had lost 24.05% over the past month, lagging the Retail-Wholesale sector's loss of 4.85% and the S&P 500's loss of 3.6% in that time.
SFIX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.04, down 76.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $432.10 million, up 35.75% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for SFIX. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SFIX is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, SFIX currently has a Forward P/E ratio of 77. This valuation marks a premium compared to its industry's average Forward P/E of 9.93.
Also, we should mention that SFIX has a PEG ratio of 3.42. 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 1.05 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 110, putting it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.