Back to top

Image: Bigstock

Stitch Fix (SFIX) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Stitch Fix (SFIX - Free Report) closed at $20.85, marking a -1.51% move from the previous day. This move lagged the S&P 500's daily gain of 1%.

Coming into today, shares of the online clothing styling service had lost 1.95% in the past month. In that same time, the Retail-Wholesale sector lost 2.76%, while the S&P 500 lost 1.22%.

Investors will be hoping for strength from SFIX as it approaches its next earnings release. The company is expected to report EPS of -$0.06, down 160% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $440.91 million, up 20.39% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.02 per share and revenue of $1.91 billion, which would represent changes of -94.44% and +21.32%, respectively, from the prior 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 91.93% lower. SFIX is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, SFIX is holding a Forward P/E ratio of 977.08. For comparison, its industry has an average Forward P/E of 11.66, which means SFIX is trading at a premium to the group.

We can also see that SFIX currently has a PEG ratio of 32.57. 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. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.25 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


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


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

Published in