Share prices of Stitch Fix (NASDAQ: SFIX) took another big tumble after the company reported earnings results on March 8. The fiscal second quarter was consistent with previous guidance, but the forward outlook for next quarter was lower than investors expected. Revenue is expected to be down between 10% and 7% year over year for the fiscal third quarter ending in April.
The stock has lost nearly half its value since the beginning of the year, but at a market cap of just $1.1 billion, the stock could be trading significantly below the company's long-term value.
The market is overlooking that Stitch Fix's current struggles are self-inflicted wounds that can be corrected. Let's unpack what happened and why the stock is a bargain.
For further details see:
Why Stitch Fix Stock Is a Bargain Waiting to Pop