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Wayfair (W) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Wayfair (W) closed at $294.34, marking a -1.87% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq gained 0.69%.

Heading into today, shares of the online home goods retailer had gained 18.64% over the past month, outpacing the Retail-Wholesale sector's gain of 2.36% and the S&P 500's gain of 4.27% in that time.

Wall Street will be looking for positivity from W as it approaches its next earnings report date. The company is expected to report EPS of $0.90, up 132.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.75 billion, up 47.83% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for W. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. W is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, W is holding a Forward P/E ratio of 131.68. This represents a premium compared to its industry's average Forward P/E of 51.2.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow W in the coming trading sessions, be sure to utilize Zacks.com.


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