In the latest trading session, Wayfair (W) closed at $217.92, marking a -1.04% move from the previous day. This move lagged the S&P 500’s daily gain of 0.91%. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 0.59%.
Heading into today, shares of the online home goods retailer had gained 14.72% over the past month, outpacing the Retail-Wholesale sector’s gain of 11.98% and the S&P 500’s gain of 5.26% 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. On that day, W is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 165.93%. Meanwhile, our latest consensus estimate is calling for revenue of $3.95 billion, up 68.58% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$4.20 per share and revenue of $12.61 billion, which would represent changes of +47.7% and +38.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for W. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 102, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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