Stitch Fix Stock is Suddenly Hot. Here's Why.

Stitch Fix (NASDAQ: SFIX) plunged after its fourth-quarter earnings report last month.

Shares dipped 15.5% on Sept. 23 as the company posted a wider-than-expected loss and issued weak guidance for the current quarter, calling for revenue growth in the mid to high single digits. In a market where nearly every e-commerce stock has been on fire, investors were disappointed to see only modest growth from the company, but something surprising has happened in the weeks since.

Stitch Fix shares have suddenly surged, and the stock is now up more than 40% since its post-earnings slide. Oddly, there's been no major news out on the personalized styling service in the intervening weeks, but a number of other factors seem to be driving the stock higher. Let's look at three reasons.

Source Fool.com