Poshmark (POSH) was trading at more than $100 per share in mid-January. The stock declined to $70 by late January. Though POSH popped to $78 in mid-February, it slid right back down to $57 later that month. POSH has been on the decline ever since, dropping all the way below $40 as of mid-April.

Conduct an online search for POSH, and you will find the company was founded in 2011, and its CEO, Manish Chandra, has been at the helm across the ensuing decade. However, your online search might also turn up a Google review rating of 2.3 stars out of 5 for the company. This rating is based on 170 Google reviews. This negative feedback combined with POSH’s declining stock price isn’t exactly good news for POSH shareholders.

Will POSH bounce back from its 60% drop after going public? Let’s find out.

POSH Background

Based in Redwood City, California, POSH provides a social marketplace for both new and used apparel and other stylish items. These items are geared toward all demographics, including women, men, and children. Some of POSH’s offerings can also be used in the home.

POSH is currently trading $3 away from its 52-week low of $36.59. To provide some perspective, the stock’s 52-week high is a whopping $104.98. POSH dropped 22% on one day alone in mid-March following its first-ever earnings report. The report’s figures were solid, yet the company’s future outlook left much to be desired.

POSH reported revenue of just under $79 million in the final quarter of 2020, representing a 27% hike from the $55 million raked in by the company in the same quarter one year ago. In fact, POSH beat analysts’ expectations, yet disappointing sales projections sent investors fleeing for the exits. POSH executives forecasted first-quarter revenue for the current year to be around $76 million. The Street anticipated revenue of around $80 million for the quarter.

POSH According to Analysts

Check out the analysts’ take on POSH, and you will find they don’t exactly expect the stock will soar to the moon. Nor do these experts expect POSH to land among the stars. Of the nine analysts who have issued recommendations for the stock, four consider it a Hold, four consider it a Buy, and only one considers it a Strong Buy. The fact that the same number of analysts view POSH as a Hold as those who view it as a Buy is quite concerning, to say the least, especially following the stock’s massive slide.

POSH’s POWR Rating

POSH is not exactly a POWR Ratings superstar. The stock has a D grade in the Stability component of the POWR Ratings and Cs in the Growth, Value, and Momentum components. If you are curious as to how POSH fares in the Sentiment and Quality components, you can find out by clicking here.

Of the 68 publicly traded companies in the Consumer Goods industry, POSH is ranked 47th. The Consumer Goods industry is rated C. To find top-ranked stocks in this industry, click here.

Is POSH a Buy Following Its Massive Decline?

No, POSH does not qualify as a Buy. In fact, this stock looks like it will struggle to move sideways in the weeks and months ahead. POSH is a POWR Ratings dud with an overall C grade. The stock’s C grades in most of the POWR Ratings components are concerning.

Add in the fact that POSH has a D Stability component grade, and investors have all the more reason to be wary. Resist the temptation to buy POSH on the dip.

POSH shares . Year-to-date, POSH has declined -58.72%, versus a 10.79% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

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