1 Sleeper Stock That Could Win Big in 2023
It's been a rough stretch for leading styling service Stitch Fix (NASDAQ: SFIX). The stock fell 69% after reporting worsening revenue trends over the last year. Revenue hit a peak of $581 million in the fiscal first quarter of 2022 before tumbling to $456 million in the most recent quarter.
I sold my holding in the stock last year after the company's performance started getting worse with no catalysts for a turnaround. But I recently bought the stock again -- it's fallen to a low market cap (stock price times shares outstanding) of less than $500 million, which I believe significantly undervalues the long-term potential of the business.
Stitch Fix's styling service is too valuable to consumers for the market to value it this cheaply. Moreover, the return of founder Katrina Lake as interim CEO is a big step in turning the business around. Here's why the stock could rebound sharply in 2023.
Source Fool.com
