Stitch Fix (SFIX) closed the most recent trading day at $29.37, moving +1% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.05%. Meanwhile, the Dow lost 0.78%, and the Nasdaq, a tech-heavy index, lost 1.79%.
Coming into today, shares of the online clothing styling service had gained 25.51% in the past month. In that same time, the Retail-Wholesale sector gained 4.07%, while the S&P 500 gained 1.5%.
SFIX will be looking to display strength as it nears its next earnings release, which is expected to be March 9, 2020. On that day, SFIX is projected to report earnings of $0.06 per share, which would represent a year-over-year decline of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $452.96 million, up 22.33% from the year-ago period.
SFIX's full-year Zacks Consensus Estimates are calling for earnings of $0.08 per share and revenue of $1.92 billion. These results would represent year-over-year changes of -77.78% and +21.5%, respectively.
Investors might also notice recent changes to analyst estimates for SFIX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 1.69% higher. SFIX is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, SFIX currently has a Forward P/E ratio of 387.73. This represents a premium compared to its industry's average Forward P/E of 12.98.
We can also see that SFIX currently has a PEG ratio of 25.85. 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 1.34 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 69, putting it in the top 28% 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.
To follow SFIX in the coming trading sessions, be sure to utilize Zacks.com.