Vestis Outlook: A Weak Technical Picture and Mixed Analyst Signals

Market SnapshotTakeaway: Vestis (VSTS.N) is showing a weak technical outlook with bearish signals dominating, while the stock recently rose 15.13%. Analyst ratings are mixed and not aligned with the upward price movement.

News Highlights

Recent headlines include K-Bro's transformative acquisition of Star Mayan for £107 million and Kirkland's $5.2 million credit expansion with Beyond Inc. These moves could bring strategic shifts but are not directly tied to Vestis’s performance. TELUS’s Q1 2025 results also highlight industry challenges, including regulatory risks, which could broadly affect market sentiment.

Analyst Views & Fundamentals

The simple average analyst rating for Vestis is 2.67, while the historical performance-weighted rating is just 0.62, reflecting significant inconsistency among analysts. Goldman Sachs and Baird have historically underperformed with 0% win rates, while JP Morgan has a better 66.7% win rate. However, recent ratings are split: two "Neutral" and one "Sell" within the last 20 days, with the price rising despite the pessimistic expectations. Key fundamental values: Return on Assets (ROA): -0.95% Net profit margin on total assets: -1.26% Net cash flow from operating activities per share (YoY growth): 18.75% Current liabilities / Total liabilities: 22.01% Net cash flow from operating activities / Total liabilities: 1.64% Profit-MV: 0.00% Cash-MV: -158.31% Asset-MV: 93.86% Revenue-MV: 179.10% PB-ROE: -78.31% Model scores (internal diagnostic scores, 0-10): ROA (%): 1 Annualized net profit margin on total assets (%): 2 Net cash flow from operating activities per share (YoY growth rate %): 2 Current liabilities / Total liabilities (%): 2 Net cash flow from operating activities / Total liabilities (%): 2 Profit-MV: 2 Cash-MV: 2 Asset-MV: 2 Revenue-MV: 0 PB-ROE: 0

Money-Flow Trends

Vestis's fund-flow analysis shows negative trends across all categories, with no inflow dominating the stock. The overall inflow ratio is just 45.60%, with big-money (block) investors showing 45.11% inflow, suggesting institutional caution. Even the smallest investors (small retail) show only 49.15% inflow, a modest level. The fund-flow score is 7.66 (good), but this doesn't override the negative technical signals.

Key Technical Signals

Technical indicators paint a clearly bearish picture with 4 out of 4 signals leaning negative and 0 bullish indicators. The internal technical score is 2.07 (weak), and the model advises to avoid the stock. WR Overbought: Internal score: 1.91 – Overbought conditions suggest caution. RSI Overbought: Internal score: 1.60 – Overbought RSI adds bearish pressure. Long Upper Shadow: Internal score: 1.00 – A strong bearish candle pattern. Long Lower Shadow: Internal score: 3.77 – A neutral to mildly bullish pattern, but it is not enough to offset the others.

Recent chart patterns (by date): Dec 01: WR Overbought, RSI Overbought Dec 04: WR Overbought, Long Lower Shadow Dec 05: WR Overbought Dec 02: Long Upper Shadow, Long Lower Shadow Dec 03: Long Lower Shadow

Conclusion

Investors should consider avoiding Vestis (VSTS.N) at this time. The technical indicators are heavily bearish, and the analyst ratings are inconsistent and not aligned with the recent price rise. While there are some pockets of positive cash flow and asset values, the overall market sentiment and risk profile remain negative. Watch for a pull-back or clearer signs of strength before considering an entry.