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Stitch Fix (SFIX) Dips More Than Broader Markets: What You Should Know

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Stitch Fix (SFIX - Free Report) closed at $20.67 in the latest trading session, marking a -1.62% move from the prior day. This change lagged the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.22%.

Coming into today, shares of the online clothing styling service had gained 3.75% in the past month. In that same time, the Retail-Wholesale sector gained 7.17%, while the S&P 500 gained 4.58%.

Investors will be hoping for strength from SFIX as it approaches its next earnings release, which is expected to be October 1, 2019. On that day, SFIX is projected to report earnings of $0.04 per share, which would represent a year-over-year decline of 77.31%. Our most recent consensus estimate is calling for quarterly revenue of $432.10 million, up 35.75% from the year-ago period.

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. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SFIX is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that SFIX has a Forward P/E ratio of 78.23 right now. This represents a premium compared to its industry's average Forward P/E of 11.67.

We can also see that SFIX currently has a PEG ratio of 3.48. 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. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.26 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 59, which puts it in the top 24% 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.

To follow SFIX in the coming trading sessions, be sure to utilize Zacks.com.


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