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Wayfair (W) Soars 10.3%: Is Further Upside Left in the Stock?

Zacks Equity Research
·2-min read

Wayfair (W) shares ended the last trading session 10.3% higher at $56.13. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 25.3% loss over the past four weeks.

Wayfair extended its rally, driven by its latest workforce reduction step. The company announced that it would be cutting 1,650 jobs which represent 13% of its global workforce and 19% of its corporate team as of Dec 31, 2023.

This online home goods retailer is expected to post quarterly loss of $0.27 per share in its upcoming report, which represents a year-over-year change of +84.2%. Revenues are expected to be $3.14 billion, up 1.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

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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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Wayfair is part of the Zacks Internet - Commerce industry. MYT Netherlands Parent B.V. Sponsored ADR (MYTE), another stock in the same industry, closed the last trading session 1% higher at $2.99. MYTE has returned -6% in the past month.

For MYT Netherlands Parent B.V. Sponsored ADR , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.04. This represents a change of -69.2% from what the company reported a year ago. MYT Netherlands Parent B.V. Sponsored ADR currently has a Zacks Rank of #3 (Hold).

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Wayfair Inc. (W) : Free Stock Analysis Report

MYT Netherlands Parent B.V. Sponsored ADR (MYTE) : Free Stock Analysis Report

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Zacks Investment Research