Stitch Fix completes turnaround with client growth and strong buyback, stock undervalued below $4

Stitch Fix, Inc. has successfully completed a business turnaround, marked by three consecutive quarters of new client growth and a 10% improvement in revenue per active client over two years. The company is strengthening its client base while trading at a low valuation of 10 times adjusted EBITDA and holding $229 million in cash. Additionally, Stitch Fix is executing a $105 million stock buyback program. These factors suggest the stock, currently under $4, undervalues the company's positive momentum and achievable revenue targets for fiscal year 2027.