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Just For You Wall Street Loves FIGS. So Why Do Price Targets Predict a Pullback?Written 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 returned to a price it hasn't seen in nearly four years. The stock has surged almost 260% over the past year, including a 58% jump in the last month. The rally has been driven by strong earnings reports and a wave of bullish analyst commentary. Yet despite that run-up, the consensus 12-month price target sits at just $12.25 — almost 30% below the current share 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 earnings 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 at the height of the COVID-19 pandemic. As the pandemic eased, however, shares sharply reversed course and within 12 months were trading below $8. In the years that followed, FIGS remained mostly range-bound in the single digits; after dipping below $4 in April 2025, the stock began another move higher. Earnings Momentum Sparks Rally After steady gains following positive Q1 and Q2 2025 earnings, the Q3 2025 results released on Nov. 6 pushed the stock even higher. The report showed stronger-than-expected revenue growth, solid demand across its core business and healthy margins despite tariff pressures. The company also issued an upbeat outlook, raising its full-year guidance for net revenue and adjusted EBITDA margins. The news prompted a more than 30% rally over the following week and a Zacks upgrade to Strong Buy from Hold. Elon did the seemingly impossible – far faster than anyone expected… And it's sent the tech industry into PANIC MODE. ChatGPT, Claude, Google Gemini, and DeepSeek could soon become obsolete. And three little-known firms could soar 10X or higher as a result. Get the details here. 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% increase in revenue and marked the company's best quarterly sales, topping $200 million. In its earnings call, FIGS — which gained visibility by outfitting Team USA's medical team during the Winter Olympics — highlighted broad-based strength, including growth in its active customer base and higher average order values. Scrubwear, the company's core product and more than three-quarters of net revenue, was a key driver, rising 35%. International sales also contributed, jumping 55%. The fourth quarter capped a strong fiscal year: net revenue rose 14% year-over-year to a record $630 million. Despite tariff pressures that weighed on gross margins, profitability held up, with full-year adjusted EBITDA margin beating the company's target by more than 200 basis points. Earnings and Outlook Spark Analyst Support FIGS issued a positive outlook for the year ahead, expecting continued demand supported in part by healthcare job growth. Management emphasized plans to expand into new international markets, pursue growth opportunities across its businesses and continue its share buyback program. For fiscal 2026, FIGS expects net revenue growth of 10% to 12% with improving profitability targets. Analysts responded with a flurry of upgrades and revised targets after the earnings release. Barclays raised its rating to Strong Buy from Hold; KeyCorp moved to Overweight from Sector Weight with a $17 price target; Goldman Sachs shifted to Hold from Strong Sell; BTIG reiterated a Buy rating with a $15 target; and Telsey Advisory lifted its target to $15 from $9. FIGS Stock Pushes Past Price Targets FIGS' strong results have 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, and the rally intensified after the numbers came out. 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, roughly 30% higher than 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 stands above the $17 target set by KeyCorp. The gap between bullish analyst commentary and relatively modest price targets suggests analysts appreciate improving fundamentals but remain cautious about valuation. At current levels, shares trade at a price-to-earnings ratio near 90, implying much of FIGS' expected growth may already be priced in. Investors have clearly rewarded the company's turnaround, but skepticism remains over whether the stock can sustain further gains or if a pullback is likely.
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