Why Figs Stock Keeps Going Up

FIGS stock jumped 27% following an earnings report that doubled Wall Street profit expectations. The medical apparel company posted 29% year-over-year sales growth and 300% earnings growth, driving two analysts to raise their price targets to $20. One analyst lowered their target to $16.

The stock trades at a 38x price-to-earnings ratio, but analysts at The Motley Fool argue valuation looks more reasonable at 22x enterprise value-to-free cash flow given the growth rate. The dramatic earnings beat—delivering twice the consensus estimate—validates the company's momentum in the healthcare apparel category.

The split analyst reaction signals ongoing debate about valuation at current levels despite the strong operating performance. FIGS has now demonstrated it can sustain double-digit revenue growth while accelerating profitability, a combination that typically supports premium multiples.