Deep Dive Into Stitch Fix Stock: Analyst Perspectives (10 Ratings)

During the last three months, 10 analysts shared their evaluations of Stitch Fix SFIX, revealing diverse outlooks from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Stitch Fix, revealing an average target of $3.21, a high estimate of $4.00, and a low estimate of $2.00. A 15.75% drop is evident in the current average compared to the previous average price target of $3.81.

Deciphering Analyst Ratings: An In-Depth Analysis

An in-depth analysis of recent analyst actions unveils how financial experts perceive Stitch Fix. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Stitch Fix. This information provides a snapshot of how analysts perceive 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 set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Stitch Fix's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Stitch Fix analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

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.

Breaking Down Stitch Fix's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Stitch Fix faced challenges, resulting in a decline of approximately -17.53% in revenue growth as of 31 January, 2024. This signifies a reduction in the company's 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: Stitch Fix's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -10.75%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -16.0%, the company may need to address challenges in generating satisfactory returns for shareholders.

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

Debt Management: Stitch Fix's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.65.

What Are 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 supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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