Thanks for signing up for DividendStocks.com! It's the daily newsletter built for dividend and income investors. Before we can begin sending your daily updates, there’s one quick step left. Please confirm your subscription using the link below so our emails reach your inbox. Click Here to Confirm Your Subscription to DividendStocks.com Here’s a small glimpse of what you’ll get access to: Dividend Stock Ideas — Each newsletter features dividend stocks with high yields, sustainable payouts, and strong growth potential. Ex-Dividend Stocks — Want to capture upcoming dividend payouts? Find out which stocks are going ex-dividend this week. Market News and Events — Stay in the loop on the latest developments impacting popular dividend names like AT&T, Exxon Mobil, IBM, Procter & Gamble, and Verizon. Bonus: As a thank-you for confirming, you’ll also receive a free PDF copy of Automatic Income, our popular guide to building wealth through dividend investing. Let’s get your dividend journey started! Discover Top Income-Generating Stocks Here See you in your inbox soon,
The DividendStocks.com Team P.S. Don’t miss out click here to verify your subscription and secure your daily dividend insights and your free investing guide!
Wednesday's Bonus Story Wall Street Loves FIGS—Why Do Price Targets Predict Pullback?Submitted by Jennifer Ryan Woods. Article Published: 3/4/2026. 
Key Points - FIGS stock has surged nearly 260% over the past year, hitting a price not seen since shortly after its 2021 IPO.
- Q4 revenue topped $200 million—the company's best quarter ever—with scrubwear sales up 35% and international sales jumping 55%.
- Despite the rally and bullish analyst commentary, the consensus price target sits almost 30% below current levels.
- Special Report: Elon's "Hidden" Company
After a stunning plunge following its 2021 IPO, medical and lifestyle apparel company FIGS, Inc. (NYSE: FIGS) has roared back to life, trading at a price it hasn't touched in nearly four years. The stock, currently above $17, has surged almost 260% over the past year, including a 58% spike in the last month alone. The rally has been driven by strong earnings and a wave of bullish analyst commentary. Yet despite the momentum, the consensus 12-month price target sits at just $12.25—almost 30% below the current price. That raises a key question: how much of this recovery is supported by fundamentals, and how much is momentum? A look at FIGS' history and recent results offers some clues. Early investors enjoyed a quick windfall after the company's May 2021 IPO at $22 per share, which climbed to about $50 within a month. The Wall Street Journal is asking whether a stock market crash is coming. Research from Weiss Ratings suggests the first half of 2026 could be very tough for certain stocks as a radical shift hits the market. Some of America's most popular names could take serious damage. Analysts have identified five stocks you should consider avoiding before this event plays out. If these are in your portfolio, you'll want to review your positions carefully. See the five stocks to avoid and learn what's driving this shift. At the height of the COVID-19 pandemic, demand for medical apparel surged. As the pandemic eased, shares reversed sharply and, within a year, traded below $8. In the years that followed, FIGS hovered mostly in the single digits. After dipping below $4 in April 2025, however, the stock began a sustained rally to the upside. Earnings Momentum Sparks Rally Steady gains after positive Q1 and Q2 2025 earnings reports culminated in a blockbuster Q3 2025 result released on Nov. 6. That report showed stronger-than-expected revenue growth, healthy demand across core categories and solid margins despite tariff pressures. The company also raised full-year guidance for net revenue and adjusted EBITDA margins. Wall Street cheered, pushing the stock up more than 30% over the following week and prompting Zacks Research to upgrade the rating to Strong Buy from Hold. The momentum continued after the Q4 2025 earnings report on Feb. 26. The quarter delivered a 33% jump in revenue and marked the company's best quarterly sales yet, topping $200 million. In its earnings call, management pointed to broad-based strength, including growth in the active customer base and higher average order values. Scrubwear—the company's core offering and the segment responsible for more than three-quarters of net revenue—was a particular bright spot, with sales up 35%. International sales rose 55%, helping to propel full-year net revenue to a record $630 million, up 14% year-over-year. Despite tariff headwinds that pressured gross margins, profitability held up: full-year adjusted EBITDA margin beat guidance by over 200 basis points. Analysts Applaud Earnings and Outlook FIGS issued a constructive outlook for the year ahead, forecasting continued demand supported in part by growth in healthcare employment. Management highlighted plans to enter new international markets, prioritize growth initiatives across businesses and continue its stock buyback program. For fiscal 2026, FIGS expects net revenue to grow 10% to 12%, with improved profitability targets. Analysts were quick to react. Barclays upgraded its rating to Strong Buy from Hold; KeyCorp moved to Overweight from Sector Weight with a $17 price target; and Goldman Sachs shifted to Hold from Strong Sell. BTIG reiterated a Buy rating with a $15 target, and Telsey Advisory raised its target to $15 from $9. FIGS Stock Pushes Past Price Targets FIGS' strong results are the clear catalyst behind the stock's four-year highs. Shares began climbing even before the Q4 report, jumping nearly 14% in the session ahead of the release. After the results, the rally intensified: the stock surged 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, more than double Morgan Stanley's $8 target issued in January and at or above the highest analyst target of $17 from KeyCorp. The gap between bullish sentiment and relatively modest price targets suggests analysts like FIGS' improving fundamentals but remain cautious on valuation. At current levels, shares trade at a price-to-earnings ratio near 90, implying much of the company's expected growth is already priced in. There are few publicly traded direct competitors to FIGS, though lifestyle apparel leader lululemon athletica inc. (NASDAQ: LULU)—a dominant name in premium activewear—is trading at a P/E of less than 12 (compare stocks). The bottom line: investors are rewarding FIGS' turnaround, but questions remain about whether the stock can sustain its ascent or if a pullback is likely.
| 
