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Wayfair (W) Stock Sinks As Market Gains: What You Should Know
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Wayfair (W - Free Report) closed the most recent trading day at $265.87, moving -1.63% from the previous trading session. This move lagged the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 0.54%, while the tech-heavy Nasdaq added 0.19%.
Heading into today, shares of the online home goods retailer had lost 5.74% over the past month, lagging the Retail-Wholesale sector's gain of 7.84% and the S&P 500's gain of 4.79% 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. The company is expected to report EPS of $0.84, up 137.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.70 billion, up 60.32% from the prior-year quarter.
W's full-year Zacks Consensus Estimates are calling for earnings of $2.70 per share and revenue of $13.94 billion. These results would represent year-over-year changes of +133.62% and +52.73%, respectively.
Investors might also notice 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 61.18% lower within the past month. W is currently a Zacks Rank #3 (Hold).
Looking at its valuation, W is holding a Forward P/E ratio of 99.93. Its industry sports an average Forward P/E of 46.25, so we one might conclude that W is trading at a premium comparatively.
Also, we should mention that W has a PEG ratio of 4.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Commerce stocks are, on average, holding a PEG ratio of 3.34 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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Wayfair (W) Stock Sinks As Market Gains: What You Should Know
Wayfair (W - Free Report) closed the most recent trading day at $265.87, moving -1.63% from the previous trading session. This move lagged the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 0.54%, while the tech-heavy Nasdaq added 0.19%.
Heading into today, shares of the online home goods retailer had lost 5.74% over the past month, lagging the Retail-Wholesale sector's gain of 7.84% and the S&P 500's gain of 4.79% 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. The company is expected to report EPS of $0.84, up 137.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.70 billion, up 60.32% from the prior-year quarter.
W's full-year Zacks Consensus Estimates are calling for earnings of $2.70 per share and revenue of $13.94 billion. These results would represent year-over-year changes of +133.62% and +52.73%, respectively.
Investors might also notice 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 61.18% lower within the past month. W is currently a Zacks Rank #3 (Hold).
Looking at its valuation, W is holding a Forward P/E ratio of 99.93. Its industry sports an average Forward P/E of 46.25, so we one might conclude that W is trading at a premium comparatively.
Also, we should mention that W has a PEG ratio of 4.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Commerce stocks are, on average, holding a PEG ratio of 3.34 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.