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This Week's Exclusive Content Wall Street Loves FIGS. So Why Do Price Targets Predict a Pullback?Reported by Jennifer Woods. Article Posted: 3/2/2026. After a stunning plunge following its 2021 IPO, medical and lifestyle apparel company FIGS, Inc. (NYSE: FIGS) has roared back to a price not seen in nearly four years. The stock has surged almost 260% over the past year, including a 58% rise in the last month alone. The rally has been fueled by strong earnings reports and a wave of bullish analyst commentary. Yet despite the advance and optimistic sentiment, the consensus 12-month price target sits at just $12.25 — almost 30% below the current stock price. That raises the question: how much of this recovery is supported by fundamentals, and how much is momentum? A closer look at FIGS' recent results and the stock's price action offers some clues. Early investors in FIGS saw a quick windfall after the company's IPO, which debuted in May 2021 at $22 per share and, within a month, surged to $50 per share. It was a good time to be a medical-apparel company, as the COVID-19 pandemic spurred demand for such gear. As the pandemic eased, however, shares sharply reversed course and within a year were trading below $8. In the years that followed, FIGS remained mostly range-bound in the single digits, though after dipping below $4 in April 2025 the stock began to turn upward again. Earnings Momentum Sparks Rally After notching steady gains following positive Q1 and Q2 2025 earnings reports, the Q3 2025 results, released on Nov. 6, sent the stock higher. The report featured stronger-than-expected revenue growth, healthy demand across its core business, and resilient margins despite tariff pressures. The company also issued an upbeat outlook, raising its full-year guidance for net revenue and adjusted EBITDA margins. Wall Street responded, pushing the stock up more than 30% over the following week and prompting Zacks Research to upgrade the stock to Strong Buy from Hold. What if you could claim a stake in what's set to be the biggest IPO ever… starting with just $500?
Everyone is talking about Elon Musk's SpaceX IPO. Click here to get the details and I'll show you how to claim your stake… Key Points - FIGS stock is up nearly 260% over the last year
- Strong earnings have fueled the rally
- Stock is trading almost 30% above the average price target
- Special Report: [Sponsorship-Ad-6-Format3]
Momentum continued after the Q4 2025 earnings report released on Feb. 27. The report highlighted a 33% jump in revenue and marked the company's best quarterly revenue, with sales topping $200 million. In its earnings call, the company — which earned some bragging rights by outfitting Team USA's medical team during the Winter Olympics — pointed to strength across the board, including growth in its active customer base and higher average order values. Scrubwear, which accounted for more than three-quarters of net revenue, was a particular standout, with sales up 35%. International sales also helped drive growth, rising 55%. The quarter capped off a strong year for FIGS, as net revenue rose 14% year-over-year to a record $630 million. Despite tariff pressures that affected gross margins, profitability was solid, with full-year adjusted EBITDA margin beating its target by more than 200 basis points. Earnings and Outlook Spark Analyst Support FIGS issued an upbeat outlook for the year ahead, anticipating continued demand driven in part by growth in healthcare jobs. It highlighted plans to expand into new international markets, prioritize growth opportunities across its businesses, and continue its stock buyback program. For fiscal 2026, FIGS expects net revenue to grow 10% to 12%, with improving profitability targets. Analysts appeared equally encouraged about FIGS' future prospects, publishing a flurry of upbeat reports after the earnings release. Barclays upgraded to Strong Buy from Hold, KeyCorp shifted to Overweight from Sector Weight with a $17 price target, and Goldman Sachs moved to Hold from Strong Sell. BTIG reiterated its Buy rating with a $15 target, and Telsey Advisory raised its target to $15 from $9. FIGS Stock Pushes Past Price Targets FIGS' strong earnings have clearly been the main catalyst behind the stock's climb to four-year highs. Shares began rising even before the Q4 report, jumping nearly 14% in the session ahead of the release. After the results were announced, the rally intensified: the stock surged 24% on the first trading day following the report, then added another 10% the next day. As of March 4, the stock was trading above $17, about 30% above the average 12-month price target of $12.25 based on 10 analyst reports. That level is more than double Morgan Stanley's $8 target issued in January and sits above the highest analyst target of $17 set by KeyCorp. The gap between recent analyst enthusiasm and lower price targets suggests that while analysts are encouraged by FIGS' improving fundamentals, many remain cautious about valuation. At its current level, shares are trading at a price-to-earnings ratio nearing 90, implying that much of FIGS' expected growth may already be priced in. Investors applauding the turnaround should still weigh the possibility of a pullback, given the stock's elevated valuation and the potential for momentum to cool.
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