FIGS stock soars 66% following InvestingPro’s April Fair Value signal

In a compelling validation of InvestingPro’s Fair Value analysis capabilities, healthcare apparel maker FIGS, Inc. (NYSE:FIGS) has delivered an impressive 66% return since being identified as significantly undervalued in early April 2025. This success story demonstrates how sophisticated valuation models can help investors identify meaningful market opportunities. For investors seeking similar opportunities, InvestingPro’s Most undervalued list continues to highlight promising stocks with potential upside.

FIGS, a direct-to-consumer healthcare apparel company known for its premium scrubs and medical wear, caught the attention of InvestingPro’s Fair Value models when trading at $3.62 on April 8, 2025. At that time, the company showed strong fundamentals with $561 million in revenue and healthy gross margins of 67.35%, despite experiencing volatile trading in the preceding months.

The Fair Value analysis identified a significant mispricing, estimating an upside potential of approximately 50%. This assessment was based on FIGS’ strong brand recognition in healthcare apparel, robust financial position, and strategic growth initiatives, including international expansion plans and operational improvements through a new distribution center.

The stock’s subsequent performance has thoroughly validated this analysis. From the April signal price of $3.62, FIGS shares climbed steadily to reach $6.03 by mid-July 2025, delivering a total return of 66% in just over three months. This movement was supported by several positive developments, including stronger-than-expected Q1 2025 earnings and the unveiling of strategic expansion plans at the Consumer Growth Conference.

Recent analyst coverage reflects the company’s improved market position, with Barclays (LON:BARC) Capital raising its price target from $4.00 to $5.00 in May 2025. The company’s fundamentals remain strong, supported by its premium brand positioning and expansion initiatives in the growing healthcare apparel market.

InvestingPro’s Fair Value methodology combines multiple valuation approaches, including discounted cash flow analysis, comparable company metrics, and market-based factors, to provide a comprehensive assessment of a stock’s intrinsic value. This multi-faceted approach helps investors identify opportunities where market prices significantly deviate from fundamental value.

For investors looking to uncover similar opportunities, InvestingPro offers access to these sophisticated valuation tools, along with real-time alerts, detailed financial analysis, and professional-grade research capabilities. Learn more about InvestingPro to gain access to actionable insights that can help identify tomorrow’s market opportunities today.