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Wayfair (W) Gains But Lags Market: What You Should Know

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Wayfair (W - Free Report) closed at $289.50 in the latest trading session, marking a +0.07% move from the prior day. This change lagged the S&P 500's 0.74% gain on the day. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 0.95%.

Coming into today, shares of the online home goods retailer had gained 15.69% in the past month. In that same time, the Retail-Wholesale sector gained 4.59%, while the S&P 500 gained 4.41%.

Wall Street will be looking for positivity from W as it approaches its next earnings report date. This is expected to be February 25, 2021. The company is expected to report EPS of $0.91, up 132.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.75 billion, up 47.98% from the year-ago period.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 currently sporting a Zacks Rank of #3 (Hold).

Investors should also note W's current valuation metrics, including its Forward P/E ratio of 126.17. This valuation marks a premium compared to its industry's average Forward P/E of 55.45.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 30% 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.


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