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Exclusive Article from MarketBeat.com Wall Street Loves FIGS. So Why Do Price Targets Predict a Pullback?Author: Jennifer Woods. Date Posted: 3/2/2026. After a stunning plunge following its 2021 IPO, medical and lifestyle apparel company FIGS, Inc. (NYSE: FIGS) has returned to a price not seen in nearly four years. The stock has surged almost 260% over the past year, including a 58% gain in the last month alone. The rally has been driven by strong earnings reports and a wave of bullish analyst commentary. Yet despite the run-up and optimistic sentiment, the consensus 12-month price target sits at just $12.25 — almost 30% below the current stock price. That raises a 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. Demand for medical apparel was strong during the COVID-19 pandemic, but as the pandemic eased, shares reversed sharply and were trading below $8 within a year. In the years that followed, FIGS remained largely range-bound in the single digits. After dipping below $4 in April 2025, the stock began another run higher. Earnings Momentum Sparks Rally Steady gains after positive Q1 and Q2 2025 earnings reports set the stage, while the Q3 2025 results, released on Nov. 6, accelerated the move. That report showed stronger-than-expected revenue growth, solid demand across core categories, and healthy margins despite tariff pressures. The company also offered an upbeat outlook, raising 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. We've found The Next Elon Musk… and what we believe to be the next Tesla.
It's already racked up $26 billion in government contracts.
Peter Thiel just bet $1 Billion on it. 👉 Unlock the ticker now and get it completely free. 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]
The momentum continued after the Q4 2025 earnings report released on Feb. 26. The quarter featured a 33% jump in revenue and was the company's best quarterly revenue, with sales topping $200 million. In its earnings call, FIGS highlighted growth in its active customer base and higher average order values. Scrubwear — more than three-quarters of net revenue — was a standout, rising 35%. International sales also contributed, increasing 55%. The fourth quarter capped a strong year: net revenue rose 14% year-over-year to a record $630 million. Despite tariff-related pressure on gross margins, profitability held up, with full-year adjusted EBITDA margin beating its target by more than 200 basis points. The company also noted it outfitted Team USA's medical staff during the Winter Olympics, a high-profile showcase for the brand. Earnings and Outlook Spark Analyst Support FIGS issued an upbeat outlook for the year ahead, anticipating continued demand supported in part by growth in healthcare employment. Management outlined plans to expand into new international markets, pursue 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 responded with a flurry of upgrades and target adjustments. Barclays upgraded to Strong Buy from Hold; KeyCorp moved to Overweight from Sector Weight with a $17 price target; Goldman Sachs revised its rating to Hold from Strong Sell; BTIG reiterated Buy with a $15 target; and Telsey Advisory raised its target to $15 from $9. FIGS Stock Pushes Past Price Targets FIGS’ strong results have been a clear driver behind the move to four-year highs. Shares began climbing even before the Q4 report, rising nearly 14% in the session ahead of the release, and the rally intensified afterward. The stock jumped 24% on the first trading day following the report and added another 10% the next day. As of March 4, the stock was trading above $17, roughly 30% above the $12.25 average 12-month price target based on 10 analyst reports. It is more than double Morgan Stanley's $8 target issued in January and has reached the top end of analyst targets, including KeyCorp's $17 projection. The gap between bullish analyst commentary and relatively modest price targets suggests analysts like FIGS' improving fundamentals but remain cautious about valuation. At current levels, shares trade at a price-to-earnings ratio near 90, implying much of the company's expected growth may already be priced in. So while investors are applauding the turnaround, skepticism persists about whether the stock can sustain further gains or whether a pullback is likely.
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