Stitch Fix, Inc. (SFIX): Wait Before Wading In

Some analysts have a lowest price target on Stitch Fix, Inc. (NASDAQ:SFIX) of $20, which would mean a -15.97% gain in value. The closing share price quoted for February 12, 2019 was $23.8. The 4.94% rally might have been tempting for an investor to buy at this point and in fact that would prove a good idea, as sell-side analysts think there is almost 68.07% more gain yet to come for shareholders. Analysts seemed to set $40 as highest price target on its way to greater gains. The stock enjoyed an overall uptrend of 39.26% from the beginning of 2019. The average 12-month price target they expect from the stock is $28.67. This mean price target represents 20.46% upside over its previous closing price. The median price target they presented was $26 for the next 12-months, which suggests a 9.24% upside from current levels.

A fresh roundup today notes that SFIX stock has added around 21.68% of its value in the past 12 months, suggesting more investors have expressed joy over about in that time period. If we turn to the Street in general, the positives still outweigh the negatives as we can see that Stitch Fix, Inc. (SFIX), have a ,neutral (2.7) analyst consensus rating. In the current time, the stock has 3 buy and 8 hold ratings. The stock registered its 52-week high of $52.44 on September 18 and its 52-week low of $16.05 on December 24. Currently, the shares are trading $2.46 above its YTD moving average of $21.34.

Moving on, Stitch Fix, Inc. (SFIX) last reported its October 2018 earnings. For brief highlights, it performed well in that quarter, with earnings up 150% year-over-year at $0.1. The company surprised analysts by 233 who were expecting $0.03 per share. Overall, its quarterly revenues jumped by 24% to reach $366.24 million, while it had reported $295.56 million in the same period a year ago. To see what investors should really expect from its January 2019 financial results consensus analyst estimates are calling for current quarter earnings per share of $0.05, up from $0.02 in the same quarter a year ago. However, earnings-per-share are expected to see growth of 39.08% in next year. From there, the company believes it can achieve a long-term annual earnings growth rate of 46.7 %. At the other end of the income statement, we have seen revenue of $1.3 billion over the trailing 12 months.

To help you decide whether it’s worth the wait (and the money), Stitch Fix, Inc. (NASDAQ:SFIX) is currently trading at 52.42X the company’s trailing-12-month earnings per share, which represents a discount compared to the sector’s 227.58X and comes in above its industry’s 32.22X. The most popular method for valuing a stock is to study the historic Price-to-Earnings (P/E) ratio using reported earnings for the past 12 months. The EPS number for this stock in the most recent four quarters of earnings stood at $0.45. P/E ratio is so popular because it’s simple, it’s effective, and, tautologically, because everyone uses it.

The 14-day Absolute ATR (Average True Range) on Tuesday, February 12 of 2019 shows that the price on average moves $1.02. The average daily volatility is 4.32% over the past week. Low volatility is good for the stock and it means we have calm and confident investors. If you check recent Stitch Fix, Inc. (SFIX) volume, you will see that it has changed to 1.02 million shares versus the average daily volume of 1.99 million shares.

When you look at the daily chart for SFIX, you will observe the stock held -28.55% losses in the 6-month period and maintains 48.29% distance from its most recent low. The past 5-day performance for the share stays positive at 6.77% but up 7.59% from its three-week moving average. Comparing to 50-day SMA, Stitch Fix, Inc. shares price is now up 10.96%. It also closed -13.67% higher from its 200-day SMA. This is often seen as the last line of defense for long term trends to find support at, else be considered broken and/or in a bear market. The daily chart of the stock more clearly reveals the slide in prices as it closed Tuesday with a 1-month performance at 15.59%.