Wayfair (W Quick QuoteW - Free Report) shares soared 5.6% in the last trading session to close at $286.13. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.9% loss over the past four weeks.

Wayfair extended its rally, driven by its impressive first-quarter 2021 results wherein both earnings and revenues topped the estimates and exhibited strong year over year growth. he company’s strengthening direct retail business across the United States and international regions remains a positive. Further, its growing efforts to expand its house-brand offerings in countries such as Canada, U.K. and Germany will continue to bolster Wayfair’s global footprints.

Price and Consensus

This online home goods retailer is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +112.6%. Revenues are expected to be $3.39 billion, up 45.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Wayfair, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on W going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>