10 Analysts Have This To Say About Stitch Fix

In the preceding three months, 10 analysts have released ratings for Stitch Fix SFIX, presenting a wide array of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $3.21, along with a high estimate of $4.00 and a low estimate of $2.00. Experiencing a 16.41% decline, the current average is now lower than the previous average price target of $3.84.

Interpreting Analyst Ratings: A Closer Look

The standing of Stitch Fix among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Stitch Fix. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Stitch Fix compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Stitch Fix's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Stitch Fix's market position. Stay informed and make well-informed decisions with our Ratings Table.

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Get to Know Stitch Fix Better

Stitch Fix Inc offers personal style services for men and women. The company engages in delivering one-to-one personalization to clients through the combination of data science and human judgment. It provides a shipment service called A FIX where the stylist's hand selects items from several merchandise with analysis of client and merchandise data to provide a personalized shipment of apparel, shoes, and accessories suited to the client's needs. The company offers products across categories, brands, product types, and price points including Women's, Petite, Maternity, Men's, and Plus. It also offers various product types, including denim, dresses, blouses, skirts, shoes, jewelry, and handbags, and sells merchandise across various ranges of price points.

Financial Milestones: Stitch Fix's Journey

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Challenges: Stitch Fix's revenue growth over 3 months faced difficulties. As of 31 January, 2024, the company experienced a decline of approximately -17.53%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -10.75%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Stitch Fix's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -16.0%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Stitch Fix's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -6.11%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Stitch Fix's debt-to-equity ratio is below the industry average at 0.65, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.