FIGS Should I Buy
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Figs Inc (FIGS) is not a strong buy at the moment for a beginner investor with a long-term focus. The stock shows weak financial performance, negative price momentum, and lacks significant positive catalysts. While there are no immediate red flags, the company's declining net income and EPS, coupled with a bearish technical setup, suggest waiting for better entry points or more favorable conditions.
The technical indicators for FIGS are bearish. The MACD histogram is negative and expanding, signaling downward momentum. The RSI is at 22.198, which is oversold but not yet providing a clear reversal signal. The stock is trading near its support level (S1: 10.257), with further downside risk toward S2: 9.974. Moving averages are converging, indicating indecision in price trends.
Analysts have raised price targets recently, reflecting some optimism about the company's potential.
The stock has experienced a significant drop in net income (-614.47% YoY) and EPS (-600% YoY). The MACD and RSI indicate bearish momentum, and the stock price has declined in regular and post-market trading. Analysts' ratings are mixed, with some maintaining a Sell or Equal Weight stance. No recent news or congress trading data provides additional support.
In Q3 2025, revenue increased by 8.17% YoY to $151.66M, but net income dropped significantly by -614.47% YoY to $8.75M. EPS also declined by -600% YoY to $0.05. Gross margin improved to 69.94%, up 4.29% YoY, indicating better cost management but failing to offset the decline in profitability.
Analysts have mixed opinions on FIGS. Goldman Sachs maintains a Sell rating with a price target of $7.50, citing near-term volatility. Barclays raised the price target to $11 with an Equal Weight rating, while BTIG and Roth Capital are more optimistic with Buy ratings and price targets of $15 and $12, respectively. However, the overall sentiment reflects caution due to demand uncertainty and selective stock picking being critical.
