Evaluating Revolve Gr: Insights From 7 Financial Analysts

In the last three months, 7 analysts have published ratings on Revolve Gr RVLV, offering a diverse range of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $18.0, a high estimate of $21.00, and a low estimate of $12.00. This upward trend is evident, with the current average reflecting a 9.09% increase from the previous average price target of $16.50.

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Revolve Gr. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Revolve Gr. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Revolve Gr compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

To gain a panoramic view of Revolve Gr's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

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Discovering Revolve Gr: A Closer Look

The Revolve Group is an emerging e-commerce retailer, selling women's dresses, handbags, shoes, beauty products, and incidentals across its marketplace properties, Revolve and FWRD. The platform is built to suit the "next-generation customer," emphasizing mobile commerce, influencer marketing, and occupying an aspirational but attainable luxury niche. With $1.1 billion in 2022 net sales, the firm sits just outside the top 30 apparel retailers (by sales) in the U.S., but has consistently generated top-line growth north of 20%-25% as the industry continues to favor digital channels. Revolve generates approximately 20% of sales from private-label offerings, while focusing on building an inventory of unique products from emerging fashion brands with less than $10 million in annual sales.

Revolve Gr: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Challenges: Revolve Gr's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -4.13%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Revolve Gr's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 1.23%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Revolve Gr's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.79%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Revolve Gr's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.51%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.11.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.