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

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In the latest trading session, Wayfair (W - Free Report) closed at $225.65, marking a -1.84% move from the previous day. This move lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, lost 0.81%.

Heading into today, shares of the online home goods retailer had gained 10.49% over the past month, lagging the Retail-Wholesale sector's gain of 11.13% and outpacing the S&P 500's gain of 5.15% in that time.

Wall Street will be looking for positivity from W as it approaches its next earnings report date. This is expected to be August 5, 2020. In that report, analysts expect W to post earnings of $0.89 per share. This would mark year-over-year growth of 165.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.95 billion, up 68.75% from the year-ago period.

W's full-year Zacks Consensus Estimates are calling for earnings of -$4.16 per share and revenue of $12.64 billion. These results would represent year-over-year changes of +48.19% and +38.49%, respectively.

Investors might also notice recent changes to analyst estimates for W. These recent revisions tend to reflect the evolving nature of short-term business trends. 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, 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. Within the past 30 days, our consensus EPS projection has moved 2.01% higher. W is holding a Zacks Rank of #2 (Buy) right now.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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