Why Figs Stock Keeps Going Up

Figs stock surged 27% after reporting earnings that doubled Wall Street's profit forecasts, with 29% year-over-year sales growth and 300% earnings growth. Despite a high P/E ratio of 38x, analysts argue the stock is undervalued at 22x enterprise value-to-FCF ratio given its growth trajectory. Two analysts raised price targets to $20, though one analyst lowered their target to $16.