$SFIX Risky pre earnings trade setup.Entry level $24.60 = $target price $28.81 = Stop loss $23.78
Possible short squeeze with 43% short interest.
RSI in strong uptrend
MACD and histogram bullish
P/E ratio 67
Company profile
Stitch Fix, Inc. is an online personal styling service that delivers personalized Fixes of apparel and accessories to men, women and kids. The company was founded by Katrina Lake and Erin Morrison Flynn in February 2011 and is headquartered in San Francisco, CA.
SFIX trade ideas
SFIX bottoming outHigher lows in macro view going on. In micro view we have a W bottom, a Golden Cross, bounce off of support with growing volume (not shown here) and MACD turning positive once more. Price action will need to break resistance above (in blue) and re-test as support. Price target 30 in next 3 months. Downside exit if resistance holds and price action back below averages and support.
$SFIX Inside buying continues in Stitch FixEntry level $22.35 = Target price $26.09 = Stop loss $21.30
Technically the chart is bullish above $22, which is near term resistance.
Indicators point to further gains .
Average analysts estimate $27.00 | Overweight
P/E ratio 58 high but warranted in growth stock.
Short interest 43% which is huge and could help sustain any rally.
Company profile
Stitch Fix, Inc. is an online personal styling service that delivers personalized Fixes of apparel and accessories to men, women and kids. The company was founded by Katrina Lake and Erin Morrison Flynn in February 2011 and is headquartered in San Francisco, CA.
SFIX buy the dip and hold for a couple quartersStitch Fix is down over 8% after hours. It beat analyst earnings estimates by 75%, although it slightly missed analyst estimates of revenue and customer growth (an almost negligible difference). The midpoint of its earnings guidance for 2020 was slightly above analyst estimates (again, an almost negligible difference).
The reason Stitch Fix is down is that on the conference call, the company CEO predicted a "soft" start in Q1 2020. Stitch Fix's marketing team noticed that summer is their strongest season, so they spent less capital marketing for the winter. To me this sounds like smart and efficient capital allocation, especially given Stitch Fix's steep marketing costs. In the short term, however, it means that Stitch Fix's stock price could languish this winter, and then recover in the spring and summer.
A couple thoughts. First, Stitch Fix has short-term support around 18.24, and I think tomorrow it will rally on the strength of its earnings beat. So this could be a great one-day swing trade if you can get an entry near the support level. Mid-term the price could fall as low as $15 per share during the slow winter season, which would be a great price to buy and hold for a couple quarters to benefit from the seasonal upswing in summer.
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SFIX Earnings Next WeekBeat last 2 quarters but this stock gets no love. They cater to fat people now, and the last time I checked, there's a lot of them in this country. Plus they have TV commercials now, so revenue is bound to increase, the question is their SGA costs.
I'm betting on fat people. They like to buy stuff. Long for earnings. Also, bouncing off of oversold condition with positive MFI divergence.
The only indicator I don't like is A/D, lots of distribution, could be a smaller gap than last time. Options premiums are sky high though.
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The "Fix" is juuuuust about in...SFIX Stitch Fix is one of my faves, and I am a customer as well. if you haven't tried it yet, I would definitely advise. Very nice service. Anyway, technically speaking I am looking for a repeat of history from the last time the 125 MA support was lost. Then it retraced back up to flirt with it as resistance until meeting its short term downtrend resistance intersection, then came back down for the glorious rebuy zone for the long. Shortly thereafter was liftoff. So, I went ahead and bought Aug 16th C27 today for this short, small move back to resistance. Then I will sell, and wait for the dip to my rebuy zone, at which point I will go ahead with a Dec call, most likely the 30 strike depending on what premium is at that time. In addition to above reasons, today officially filled the gap left from the last time it blasted off due to its earnings report, so we should be free now to move on up. Happy hunting and GLTA!!
Shorts delight at news of Amazon entering Stitch Fix territory NEWS EVENT
Amazon (NASDAQ:AMZN) Fashion's stylist team will do the shopping for Prime members based on input from a survey.
Personal Shopper by Prime Wardrobe will include personal recommendations across thousands of brands, including Calvin Klein and Levi's.
Prime members get to preview the picks and select up to eight items to receive and try on at home for free.
The service will be available through the Amazon App and will soft launch with women's clothing before expanding into menswear.
Source Seeking Alpha
Stitch Fix (NASDAQ:SFIX) shares are down 2.6% pre-market on the news.
AVERAGE ANALYSTS PRICE TARGET $36
AVERAGE ANALYSTS RECOMMENDATION OVERWEIGHT
P/E RATIO 57
SHORT INTEREST 32%
COMPANY PROFILE
Stitch Fix, Inc. is an online personal styling service that delivers personalized Fixes of apparel and accessories to men, women and kids. The company was founded by Katrina Lake and Erin Morrison Flynn in February 2011 and is headquartered in San Francisco, CA.
Stitch Fix's down trend broke todayAhead of earnings, SFIX got an upgrade from the analytics firm Stifel, which cited SFIX's history of strong earnings and its attractive valuation. That appears to have driven a breakout above the stock's downward trend line today. Trend line breaks are usually bullish, and can lead to big gains like the PG&E trend line break I identified the other day. Others are slower gainers, like my LFVN trend line play.
SFIX has recently made an inverted cup, and could now make a handle. Sell any breach of SFIX's new upward trendline.
Stitch Fix poised for a turnaroundStitch Fix is at support from a high-volume node on the volume profile and from its 50-day moving average. It also has some RSI support around 38.
The stock just got some big analyst upgrades from Zacks and Goldman, which could serve as upside catalysts. The Internet retail sector is currently outperforming the S&P 500. S&P Capital IQ rates Stitch Fix as undervalued, with stable growth potential. Overall, both fundamentals and market sentiment are looking up for the stock.
However, Stitch Fix has some downward momentum, so it could fall through the 50-day MA before rebounding from 200-day MA support near 26. I don't expect it to fall any further than that, but in the worst-case scenario we could get as low as the high-volume node at 23.
SFIX Parabolic again?If the China news is good or neutral, they're probably gonna pump the crap out of stocks next week on the shortened week.
I wouldn't buy and hold this turd, but it looks like it's got an inverted H&S or bull flag going and it went parabolic last summer, so July 26 calls.
Fed meeting is July 30/31. I expect them to hold of on the rate cut causing a huge drop. Stocks melt up until then.
$SFIX Stitch Fix is not the right fit just yet.As a result of impressive earnings, shares of NASDAQ:SFIX shares were up 26% in premarket, it could not be sustained and it sold off losing 50% of its gains by the close. Unfortunatley for SFIX sentiment regarding consumer spending is poor, tariff, supply chain issues and the fact that the economy worldwide is slowing down are all concerns for investors. From a technical perspective the stock has a history of selling off post earnings and the fact that it could not hold above the 200ma is concerning. It is also notable that the stock had a strong rejection off the long term downtrend line (blue), our bias would be that the stock will fill the gap below and possibly test the lower trend-line. With such a high short interest and a lofty P/E it is just not appealing.
AVERAGE ANALYSTS PRICE TARGET $37
AVERAGE ANALYSTS RECOMMENDATION OVERWEIGHT
SHORT INTEREST 26%
P/E RATIO 58
COMPANY PROFILE
Stitch Fix, Inc. is an online personal styling service that delivers personalized Fixes of apparel and accessories to men, women and kids. The company was founded by Katrina Lake and Erin Morrison Flynn in February 2011 and is headquartered in San Francisco, CA.
SFIX Calls $25.50 06.07.2019 PaydayTL;DR: This idea more based on the events that lead up the price action than any fundamental or technical analysis.
The reason for all the decline was a few things, a primary one being that AMZN was entering the same space as $SFIX (competition all around, it's a competitive marketplace). There was also concerns about growth continuing given the competition and a customer base issue (YOY growth was not expected to continue at their current rates). To me all of these seemed sort of moot and non-factors, they were posting good growth and beating expectations almost every earnings call so ... why would the change just because some analyst downgraded them and discredited their previous results ? I haven't met anyone who used AMZN for the same services as SFIX and lastly.... the real reason I entered this trade was... I like to gamble.... volatile stocks nearing earnings at reasonable prices .... generally my weakness.
So gamble I did.... and my $1.40 ...$25.50 calls 06.07.2019 sold for .... $4.00 this morning.
This stock that has proven to be super volatile when earnings publish, and today proved that's probably not going to change anytime soon.
Think this was a shot in dark? Did you enter similar to me? Is my blind luck about to run out? Let me know in the comments below.
SFIX good day trade on either side but more bullish SFIX has an interesting daily chart, currently it has gaped up above all its major moving daily averages. Looking at the 5 min chart, you can see that its making lower highs and is showing weakness, but it has got a lot of support to got through, so I am more inclined to take it for a long if it starts showing strength and gets above its vwap and 20 ema. I would go long on it as that stage and add to it if it clears the 32.22 daily pivot that I have drawn. This long setup would work if the SPY works in favor and stays above the 20 ema daily.