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

Stitch Fix (SFIX) closed the most recent trading day at $24.03, moving +1.01% from the previous trading session. This move outpaced the S&P 500's daily loss of 3.17%. Meanwhile, the Dow lost 3.77%, and the Nasdaq, a tech-heavy index, lost 2.28%.

Coming into today, shares of the online clothing styling service had gained 4.3% in the past month. In that same time, the Retail-Wholesale sector lost 3.38%, while the S&P 500 lost 8.05%.

SFIX will be looking to display strength as it nears its next earnings release, which is expected to be March 9, 2020. In that report, analysts expect SFIX to post earnings of $0.06 per share. This would mark a year-over-year decline of 50%. Our most recent consensus estimate is calling for quarterly revenue of $452.96 million, up 22.33% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.08 per share and revenue of $1.92 billion, which would represent changes of -77.78% and +21.5%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for SFIX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 1.69% higher within the past month. SFIX is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, SFIX is holding a Forward P/E ratio of 317.2. This represents a premium compared to its industry's average Forward P/E of 10.85.

Also, we should mention that SFIX has a PEG ratio of 21.15. 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 1.1 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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.

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