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Barchart
Ruchi Gupta

This ‘Strong Buy’ Stock Just Hit a New 52-Week High. Is It Time to Buy?

ThredUp (TDUP) is an online retail platform enabling customers to buy and sell used clothing and accessories. The site mainly targets women and children, providing a wide range of products such as tops, jackets, jeans, pants, skirts, shoes, handbags, and more. The company is transforming the way consumers think about secondhanded products while promoting sustainable fashion.

About ThredUp Stock

ThredUp’s stock is having a standout year so far having gained 220% in the year to date. TDUP is currently trading at its 52-week high of $4.47. Valued at $515 million, the stock has spiked close to 75% in a month and grown 600% in just half a year.

 

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ThredUP’s Q4 Results

ThredUp’s recent quarterly update came on March 3 when the company posted its fiscal fourth-quarter results. ThredUp posted a loss of $0.19 per share, well below analysts’ estimated loss of $0.07 per share. Revenue generated came to $67.27 million, against analysts’ $68.93 million estimate. Q4 revenue was up 9% year-over-year.

ThredUp reported adjusted EBITDA of $4.99 million, beating Wall Street’s $3.89 million bet while active buyers declined 6% to 1.3 million with orders slipping 2% to 1.2 million in the quarter. 

For 2025, management anticipates revenue in the range of $270 million to $280 million with a gross margin of 77% to 79%. For Q1, management expects revenue of around $67.5 million to $69.5 million with a gross margin of 77% to 79%.

ThredUp is set to report its first-quarter 2025 results on May 5, 2025.

Wall Street Bets on ThredUp

Wall Street analyst Dana Tesley has reiterated ThredUp’s “Outperform” rating while hiking its price target from $3 to a Street high of $6 reflecting upside potential of 35% from here. The analyst pointed toward ThredUp’s solid 2024 in which the company’s Q4 revenue and adjusted EBITDA both topped their guidance.

Tesley also pointed towards the company’s encouraging trend patterns in 2025 like increasing active buyers, strong customer retention, and a higher supply of premium apparel. Following these trends, ThredUp has guided investors toward a mid-to-high single-digit revenue growth rate directed by AI-driven improvements, demand generation, and new buyer acquisition.

In general, analysts have a positive view of the retail company as shown by the consensus “Strong Buy” rating. Its mean price target of $4.50 is roughly in line with its current trading price. 

A total of four analysts have evaluated the stock, with three giving it a “Strong Buy” rating and one giving it a “Hold” rating.

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On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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