FIGS - FIGS' Recent Rally Is Not Justified By Fundamentals The Stock Is Still A Hold
2024-05-19 18:54:49 ET
Summary
- FIGS is a popular retailer known for its fashionable and high-quality scrubs. The company has gained a strong reputation for its innovative designs and comfortable fabrics.
- However, the company has stopped growing and is unable to post reasonable operating margins. Competition might make profitability even harder to attain in the future.
- In this article, I review 1Q24 earnings. The results were unimpressive, with more investments in marketing and product that did not translate to growth.
- However, the stock rallied 20% after the earnigns release, something I consider exaggerated. The current stock price is not an opportunity.
FIGS ( FIGS ) is a healthcare apparel retailer famous for its high-quality, trendy scrubs....
FIGS' Recent Rally Is Not Justified By Fundamentals, The Stock Is Still A Hold