Assessing FIGS (FIGS) Valuation After an 81% Year-to-Date Rally

FIGS (FIGS) has quietly turned into a strong performer this year, with the stock up about 81% year to date and more than doubling over the past year, driven by improving growth and profitability. See our latest analysis for FIGS. The latest leg higher, including a powerful 1 month share price return of about 43 percent, suggests momentum is building as investors reassess FIGS growth prospects and risk profile, with the 1 year total shareholder return now above 100 percent. If FIGS recent move has you rethinking your healthcare exposure, it could be worth scanning other opportunities across healthcare stocks to see what else is lining up for potential growth. But with shares now trading above the average analyst price target and recent gains powered by sharp earnings momentum, investors must decide: Is FIGS still a mispriced growth story, or is the market already baking in its next chapter? Most Popular Narrative Narrative: 21.4% Overvalued With FIGS last closing at $10.65 versus a narrative fair value of $8.78, the story hinges on how far momentum can outrun fundamentals. Enhanced cost discipline and a digital first approach are boosting margins, offsetting external headwinds, and positioning the company for sustained earnings growth. Read the complete narrative. Curious why this story still supports a premium price tag, even after the rally? The narrative leans on rising margins and faster earnings than revenues. Want to see which long term profit and growth assumptions hold this higher value together, and how rich the future multiple really is? Read on to uncover the numbers behind that confidence. Result: Fair Value of $8.78 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, rising tariff pressures and intensifying competition could quickly erode margins and premium positioning, challenging the assumptions underpinning FIGS elevated valuation. Find out about the key risks to this FIGS narrative. Build Your Own FIGS Narrative If you see the story differently or prefer to dig into the numbers yourself, you can shape a fresh narrative in just a few minutes: Do it your way. A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding FIGS. Ready for more investment ideas? FIGS might be on a run, but you do not need to leave your next opportunity to chance. Use the Simply Wall Street Screener now to target your next potential idea. Capture emerging potential by scanning these 3576 penny stocks with strong financials that pair small size with solid financial foundations and room for meaningful upside moves. Position ahead of the next technology shift by targeting these 24 AI penny stocks at the intersection of innovation, automation, and scalable digital business models. Find attractive entry points by focusing on these 925 undervalued stocks based on cash flows where strong cash flow support may not yet be fully recognized in market prices. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.