What happened

Shares of Figs (FIGS -3.70%) were moving higher again today as the healthcare apparel company gained for the second day in a row. Yesterday it received a slew of positive analyst ratings after the quiet period following its recent IPO ended.

The stock closed up 6.1% today after gaining 17% yesterday. Earlier in today's session, the stock was up as much as 16.7%.

A person in scrubs stepping out of a helicopter.

Image source: Figs.

So what

Figs IPO'ed quietly at the end of May, but the stock has steadily gained since then and is now worth more than double its $22 IPO price. Analysts and investors are both excited about the growing direct-to-consumer scrub seller that is disrupting the industry using an e-commerce model, proprietary technical fabrics, more functional designs, and a marketing model focused on millennials. 

Yesterday, several analysts weighed in with bullish ratings on the stock, touting Figs' disruptive potential, rapid growth, and ability to expand into non-health sectors. Research firm Guggenheim said the company should be able to exceed revenue of $1 billion by 2025, up from $263.1 million last year.  

KeyBanc analyst Edward Yruma, meanwhile, said its strong growth rate and wide EBITDA margins "make it one of the most compelling growth stories in our coverage."

Now what

Figs' valuation is getting stretched after its recent run; the stock now trades for a price-to-sales ratio of 23 and a price-to-earnings ratio of 125. However, after the company posted 172% revenue growth in its most recent quarter, it's clear why the stock warrants a premium valuation. That growth will moderate as Figs faces difficult comparisons over the rest of the year, and it's also likely to attract more competition over the coming years. 

Still, this growth stock is worth keeping an eye on after its impressive incursion into the healthcare apparel industry.