VSTS Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Vestis Corp (VSTS) is not a strong buy for a beginner investor with a long-term strategy and $50,000-$100,000 to invest. While there are some positive indicators, such as bullish moving averages and a slight improvement in operational profitability, the overall financial performance, negative sentiment from analysts, and lack of strong trading signals suggest that holding off on this investment is a better decision at this time.
The MACD is positive and contracting, indicating a potential weakening of bullish momentum. The RSI is neutral at 58.048, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support and resistance levels show the stock is near its pivot point of 7.927, with resistance at 9.195 and support at 6.658. However, the stock has a high probability of declining in the short term based on candlestick pattern analysis.
Bullish moving averages, improvement in adjusted EBITDA, and a slight beat on Q1 Non-GAAP EPS estimates.
Revenue, net income, EPS, and gross margin all declined significantly YoY. Analysts maintain a generally bearish or neutral outlook, with price targets remaining low. The stock is expected to decline in the short term based on candlestick pattern analysis.
In Q1 2026, Vestis reported a revenue decline of -2.98% YoY to $663.4 million. Net income dropped significantly to -$6.39 million (-868.15% YoY), and EPS fell to -$0.05 (-600% YoY). Gross margin also declined to 20.63% (-6.95% YoY). While adjusted EBITDA improved to $70.4 million, overall financial performance remains weak.
Analysts are generally bearish or neutral on Vestis. JPMorgan and Goldman Sachs maintain Underweight and Sell ratings, respectively, despite slight price target increases. Baird is neutral, with a price target of $10. The consensus view is cautious, with no strong buy recommendations.
