Is FIGS a Smart Investment to Add to Your Portfolio?
StockNews
Published Jul 16, 2021 08:56AM ET
Updated Jul 16, 2021 09:30AM ET
Is FIGS a Smart Investment to Add to Your Portfolio?
Even though there was little market hype around medical scrubs, face masks, and shields maker FIGS, Inc.’s (FIGS) stock market debut in May 2021, the stock’s price soared nearly 29% in its first trading session. But because COVID-19 pandemic-related heightened demand for healthcare apparel is expected to decline in the near term, the question is can the stock continue advancing? Let’s find out.Direct-to-consumer (DTC) healthcare apparel and lifestyle company FIGS, Inc. (FIGS) administered a stellar IPO on May 27, 2021, with the stock’s price soaring nearly 29% that day, bringing the company’s valuation to $4.57 billion. The stock has rallied 14.3% over the past month to close yesterday’s trading session at $38.85, driven primarily by investors’ optimism regarding FIGS’ growth prospects in the relatively inelastic healthcare apparel market. FIGS is based in Santa Monica, Calif.
However, even though FIGS has successfully carved out a market niche for itself, it faces competition from Amazon.com, Inc.’s (NASDAQ:AMZN) Amazon Essentials brand and Jaanuu, Inc., among others.
So, with several companies in the same field adopting or accelerating their digital business models, FIGS could face stiff competition over the long run. So, we think the stock’s near-term prospects look uncertain.
Continue reading on StockNews
Get The News You Want
Written By: StockNews
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.