Strong Potential Upside for Stitch Fix

Strong Potential Upside for Stitch Fix

Stitch Fix Inc. (NASDAQ: SFIX) has emerged as a promising consumer pick for 2020. The company operates a unique business model that appeals to modern consumers. More than just an apparel company, Stitch Fix offers a service for men, women & kids, delivering fashionable contemporary apparel to American homes.

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Customers of Stitch Fix fill out a style questionnaire, pay a $20 styling fee, and then receive a box of curated apparel that they can try before buying. Items that aren’t wanted are returned to the company, so consumers only pay for the items that they wish to keep.

It’s a unique home-shopping model and one that is increasing in popularity. Stitch Fix has generated strong year-over-year revenue growth since 2016. In the 2019 fiscal year, revenue was up 28.62%, while gross income was up 30.74%.

This company bridges the gap between assisted in-store shopping and online shopping. Because items are curated, there’s a higher chance of customer satisfaction. The company operates with a 43.55% gross profit margin, which suggests a high level of efficiency in their strategy.

Any investor looking for a new and exciting stake in fashion/retail/apparel will find this stock to be appealing. With an average target price of $30.54, there’s a strongly suggested upside for those who buy in February.

SFIX 7 Day Growth Chart

Stitch Fix Stock

Key Data:

  • 1 Year Price Growth: 31%
  • YTD Price Growth: -8.69%
  • 3 Month Price Growth: 11%

 

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The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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