Wayfair (W - Free Report) closed at $298 in the latest trading session, marking a +1.4% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Prior to today's trading, shares of the online home goods retailer had gained 9.27% over the past month. This has outpaced the Retail-Wholesale sector's gain of 6.56% and the S&P 500's gain of 3.19% in that time.
Investors will be hoping for strength from W as it approaches its next earnings release, which is expected to be November 3, 2020. On that day, W is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 137.67%. Meanwhile, our latest consensus estimate is calling for revenue of $3.70 billion, up 60.32% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.70 per share and revenue of $13.94 billion, which would represent changes of +133.62% and +52.73%, respectively, from the prior year.
Any recent changes to analyst estimates for W should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 61.18% lower. W is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, W is holding a Forward P/E ratio of 108.66. This represents a premium compared to its industry's average Forward P/E of 44.75.
Investors should also note that W has a PEG ratio of 4.72 right now. 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. W's industry had an average PEG ratio of 3.53 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.
To follow W in the coming trading sessions, be sure to utilize Zacks.com.