Analysts are decidedly cool on Stitch Fix stock. Of 18 brokerages covering the shares, 15 have a Hold rating and none rates the stock a Buy. At a share price of around $3.80, the upside potential based on a median price target of $5.00 is 31.6%. At the high target of $7.00, the upside potential is 84.2%.
Fiscal first-quarter revenue is forecast at $459.55 million, down 4.8% sequentially and nearly 21% lower year over year. Stitch Fix is expected to post an adjusted per-share loss of $0.46, compared to a loss of $0.89 in the prior quarter and a loss per share of $0.02 a year ago. For the full fiscal year ending in July, the adjusted net loss is forecast at $1.41, better than last year’s loss of $1.90 per share. Full-year revenue is forecast at $1.91 billion, down about 12.8% compared to the prior year.
Stitch Fix is not expected to post a profit in 2023, 2024 or 2025. The enterprise value to sales multiple in each of those years is 0.2. The stock’s 52-week range is $3.09 to $26.25. Stitch Fix does not pay a dividend, and the total shareholder return for the past year is negative 83.6%.
Toll Brothers
Shares of homebuilder Toll Brothers Inc. (NYSE: TOL) have dropped by almost 30% over the past 12 months. Since posting an all-time high in mid-December of last year, the stock price has fallen by more than 36%.
When the company reported third-quarter results in August, new orders were down 60% year over year, and there has been little to indicate that home buyers are returning to the market. Among the many bad things that could still happen in the homebuilding industry are impairment charges related to land values and unsold inventories. Builders have some room to lower prices thanks to previously high margins that have improved their balance sheets.
Sentiment on the stock is better than lukewarm but not exactly bullish. Of 18 brokerages covering the company, eight have a Buy or Strong Buy rating and eight have rated the shares at Hold. At a share price of around $47.90, the upside potential based on a median price target of $51.00 is 6.5%. At the high price target of $66.00, the upside potential is more than 37%.
When the company reports fourth-quarter fiscal 2022 results, analysts expect to see revenue of $3.21 billion, up 10.5% sequentially and by 5.6% year over year. Adjusted EPS are forecast at $3.94, up 67.5% sequentially and 30.5% higher year over year. For the full fiscal year ended in October, analysts expect EPS of $9.28, up 40%, on sales of $9.77 billion, up 11.2%.
Toll Brothers stock trades at 5.2 times expected 2022 EPS, 5.8 times estimated 2023 earnings of $8.23 and 6.0 times estimated 2024 earnings of $7.97 per share. The stock’s 52-week range is $39.53 to $75.61. The company pays an annual dividend of $0.77 (yield of 1.31%). Total shareholder return for the past year was negative 28.8%.
Originally published at 24/7 Wall St.
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