In the latest trading session, Stitch Fix (SFIX - Free Report) closed at $23.21, marking a -1.23% move from the previous day. This change lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.42%, and the Nasdaq, a tech-heavy index, added 0.56%.
Coming into today, shares of the online clothing styling service had gained 22.51% in the past month. In that same time, the Retail-Wholesale sector gained 2.79%, while the S&P 500 gained 4.42%.
Investors will be hoping for strength from SFIX as it approaches its next earnings release. On that day, SFIX is projected to report earnings of -$0.06 per share, which would represent a year-over-year decline of 160%. Our most recent consensus estimate is calling for quarterly revenue of $441.04 million, up 20.42% from the year-ago period.
SFIX's full-year Zacks Consensus Estimates are calling for earnings of $0.03 per share and revenue of $1.91 billion. These results would represent year-over-year changes of -91.67% and +21.33%, respectively.
It is also important to note the recent changes to analyst estimates for SFIX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, 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. The Zacks Consensus EPS estimate has moved 86.53% lower within the past month. SFIX currently has a Zacks Rank of #3 (Hold).
Investors should also note SFIX's current valuation metrics, including its Forward P/E ratio of 865.79. For comparison, its industry has an average Forward P/E of 12.75, which means SFIX is trading at a premium to the group.
We can also see that SFIX currently has a PEG ratio of 28.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.37 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 24, putting it in the top 10% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.