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Wayfair (W) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Wayfair (W) closed the most recent trading day at $221.48, moving -1.78% from the previous trading session. This change lagged the S&P 500's daily gain of 0.78%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 1.44%.

Coming into today, shares of the online home goods retailer had gained 30.77% in the past month. In that same time, the Retail-Wholesale sector gained 7.14%, while the S&P 500 lost 1.32%.

Wall Street will be looking for positivity from W as it approaches its next earnings report date. In that report, analysts expect W to post earnings of $0.87 per share. This would mark year-over-year growth of 164.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.94 billion, up 67.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$4.23 per share and revenue of $12.57 billion, which would represent changes of +47.32% and +37.72%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. W currently has a Zacks Rank of #2 (Buy).

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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

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