Shopping habits are changed for good. Here's a company that can benefit
The pandemic has accelerated many consumer spending trends, and most of them involve ditching brick and mortar stores for online/e-commerce platforms. The clothing business is no exception. As consumers shun malls and stores in favor of shopping from home, clothing retailers are scrambling to find ways to keep them interested. Few have been as successful recently as Stitch Fix.
Stitch Fix is an online platform whose algorithms the company claims are very good at predicting what a customer will want to buy. Each customer has a personal "stylist" who picks potential options for the customer to consider, and then those clothes can be shipped and returned based on what the customer wants. It's a highly personalized shopping service, all conducted at home and online -- ideal for a pandemic.
Stitch Fix recently reported earnings, showing double-digit year over year revenue growth and its highest net additions of new clients in the company's history. That sent the stock soaring 42%. The question is, can the company's strength last?
SFIX's Stochastic Oscillator is sitting in oversold zone for 6 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SFIX advanced for three days, in of 274 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 202 cases where SFIX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SFIX moved out of overbought territory on December 12, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on December 12, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SFIX as a result. In of 103 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SFIX turned negative on December 13, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
SFIX moved below its 50-day moving average on December 24, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SFIX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SFIX broke above its upper Bollinger Band on December 11, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SFIX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.490) is normal, around the industry mean (3.964). P/E Ratio (0.000) is within average values for comparable stocks, (110.742). SFIX's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.444). SFIX has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). P/S Ratio (0.208) is also within normal values, averaging (1.139).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SFIX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock worse than average.
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General Information
a provider of subscription-based personal shopping and delivery services for women's clothing
Industry ApparelFootwearRetail