In the latest trading session, Stitch Fix (SFIX - Free Report) closed at $22.22, marking a -1.99% move from the previous day. This change lagged the S&P 500's 0.77% gain on the day. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 0.73%.
Heading into today, shares of the online clothing styling service had lost 3.16% over the past month, lagging the Retail-Wholesale sector's gain of 2.82% and the S&P 500's gain of 4.57% in that time.
Wall Street will be looking for positivity from SFIX as it approaches its next earnings report date. The company is expected to report EPS of -$0.06, down 160% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $441.04 million, up 20.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.03 per share and revenue of $1.91 billion. These totals would mark changes of -91.67% and +21.33%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SFIX. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. SFIX is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that SFIX has a Forward P/E ratio of 835.21 right now. This valuation marks a premium compared to its industry's average Forward P/E of 13.39.
Meanwhile, SFIX's PEG ratio is currently 27.84. 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. SFIX's industry had an average PEG ratio of 1.37 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.