In the latest trading session, Wayfair (W - Free Report) closed at $268.96, marking a -0.51% move from the previous day. This change lagged the S&P 500's 0.46% loss on the day. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 1.25%.
Prior to today's trading, shares of the online home goods retailer had lost 17.1% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.5% and the S&P 500's gain of 1% in that time.
Investors will be hoping for strength from W as it approaches its next earnings release. The company is expected to report EPS of $0.86, up 138.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.70 billion, up 60.62% from the year-ago period.
W's full-year Zacks Consensus Estimates are calling for earnings of $2.34 per share and revenue of $13.97 billion. These results would represent year-over-year changes of +129.14% and +53.07%, respectively.
Investors might also notice recent changes to analyst estimates for W. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. W is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, W is holding a Forward P/E ratio of 115.32. For comparison, its industry has an average Forward P/E of 47.45, which means W is trading at a premium to the group.
Meanwhile, W's PEG ratio is currently 5.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 3.28 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.