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The e-commerce company Wayfair (W - Free Report) reported third-quarter earnings before market open on Nov 3 that breezed past analysts’ estimates. The Wayfair stock gained about 7.2% on Nov 3. The online retailer of furniture, appliances and home decor products has been a winner of the coronavirus pandemic.
Wayfair came up with quarterly earnings of $2.30 per share, beating the Zacks Consensus Estimate of $0.81 per share. This compares to loss of $2.23 per share a year ago. These figures are adjusted for non-recurring items. The company’s revenues of $3.84 billion trumped $3.69 billion. Total net revenues increased $1.5 billion to $3.8 billion, up 66.5% year over year. Both U.S. and international revenues gained more than 65%.
Orders delivered in the third quarter were 15.8 million, which marked an increase of 72.8% year over year. Repeat customers placed 11.3 million orders in the third quarter of 2020, marking an uptick of 84.4% year over year.
The company indicated that consumers’ loyalty toward the brand is growing. In 2019, about 53% of Wayfair.com orders originated from customers “who had made 3 or more lifetime purchases. In 2015, this figure was about 30%,” per the company.
The company has a Zacks Rank #3 (Hold). The year-over-year sales growth estimate for the year 2020 is 52.73% while the earnings growth estimate is 133.62%. This upbeat outlook of the company makes it important to have a look at the ETFs that have exposure to the company.
ETFs in Focus
Against this backdrop, below we highlight a few ETFs that have exposure to Wayfair. These ETFs may benefit from the potential rally in the Wayfair stock.
The fund seeks to invest in companies positioned to benefit from the increased adoption of e-commerce as a distribution model, including companies whose principal business is in operating e-commerce platforms, providing e-commerce software and services, and selling goods and services online. The stock Wayfair makes up about 4.60% of the fund. It charges 50 bps in fees.
The ProShares Online Retail Index is a specialized retail index that tracks retailers that principally sell online or through other non-store channels. Wayfair accounts for about 4.76% of the fund, which charges 58 bps in fees.
The underlying EQM Online Retail Index utilizes a rules-based methodology to select a globally diverse group of companies with 70% or more of revenues from online and virtual sales. The fund charges 65 bps in fees. Wayfair makes up about 2.80% of the fund.
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Wayfair Surges Post Earnings: ETFs to Play
The e-commerce company Wayfair (W - Free Report) reported third-quarter earnings before market open on Nov 3 that breezed past analysts’ estimates. The Wayfair stock gained about 7.2% on Nov 3. The online retailer of furniture, appliances and home decor products has been a winner of the coronavirus pandemic.
Wayfair came up with quarterly earnings of $2.30 per share, beating the Zacks Consensus Estimate of $0.81 per share. This compares to loss of $2.23 per share a year ago. These figures are adjusted for non-recurring items. The company’s revenues of $3.84 billion trumped $3.69 billion. Total net revenues increased $1.5 billion to $3.8 billion, up 66.5% year over year. Both U.S. and international revenues gained more than 65%.
Orders delivered in the third quarter were 15.8 million, which marked an increase of 72.8% year over year. Repeat customers placed 11.3 million orders in the third quarter of 2020, marking an uptick of 84.4% year over year.
The company indicated that consumers’ loyalty toward the brand is growing. In 2019, about 53% of Wayfair.com orders originated from customers “who had made 3 or more lifetime purchases. In 2015, this figure was about 30%,” per the company.
The company has a Zacks Rank #3 (Hold). The year-over-year sales growth estimate for the year 2020 is 52.73% while the earnings growth estimate is 133.62%. This upbeat outlook of the company makes it important to have a look at the ETFs that have exposure to the company.
ETFs in Focus
Against this backdrop, below we highlight a few ETFs that have exposure to Wayfair. These ETFs may benefit from the potential rally in the Wayfair stock.
Global X E-commerce ETF (EBIZ - Free Report)
The fund seeks to invest in companies positioned to benefit from the increased adoption of e-commerce as a distribution model, including companies whose principal business is in operating e-commerce platforms, providing e-commerce software and services, and selling goods and services online. The stock Wayfair makes up about 4.60% of the fund. It charges 50 bps in fees.
ProShares Online Retail ETF (ONLN - Free Report)
The ProShares Online Retail Index is a specialized retail index that tracks retailers that principally sell online or through other non-store channels. Wayfair accounts for about 4.76% of the fund, which charges 58 bps in fees.
Amplify Online Retail ETF (IBUY - Free Report)
The underlying EQM Online Retail Index utilizes a rules-based methodology to select a globally diverse group of companies with 70% or more of revenues from online and virtual sales. The fund charges 65 bps in fees. Wayfair makes up about 2.80% of the fund.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>