Yahoo Finance Is Stitch Fix (SFIX) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Stitch Fix (SFIX) is a stock many investors are watching right now. SFIX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for SFIX is its P/B ratio of 1.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.16. Over the past year, SFIX's P/B has been as high as 2.39 and as low as 1.18, with a median of 1.69.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SFIX has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.51.
These are only a few of the key metrics included in Stitch Fix's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SFIX looks like an impressive value stock at the moment.
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Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report
