Wall Street is buying the turnaround story. Consumer data says don't.
HNST posted stronger margins last week, lifted its profit outlook, and the stock trades near a one-year high. Analysts are on board — Wall Street Score sits at 73.
The real story looks nothing like the rally.
Our consumer demand data on Honest fell 26% over the past month versus a year ago, and revenue dropped 11% last quarter. Diapers — the product Honest was built on — keep sliding, with wipes and personal care carrying the quarter.
That's why the Main Street Score sits at just 15 and the LikeFolio Score at 13. Signal: Strong Sell.
PRPL has no rally to lean on.
The mattress maker cut its full-year revenue outlook Monday to $420-$440 million from $500-$520 million after wholesale revenue collapsed 19% in Q2.
Consumer demand for Purple is down 62% from a year ago.
Purple's own showrooms grew comparable sales 18% last quarter — the one bright spot. Everything else shrank: total revenue fell 6% to $98.3 million, and the company booked a $3.2 million net loss.
Main Street Score: 16. LikeFolio Score: 14. Signal: Strong Sell.
Both sit on our short list.