Undoubtedly, Wayfair Inc. (NYSE:W) has been one of the most volatile stocks in the market in recent times, and the way it handled Wednesday’s volatility suggests the stock may be poised to decline heading into short-terms. The shares dropped -2.85 points or -1.66 percent at $168.72 with a heavy trade volume of 2.485 million shares. After opening the session at $172, the shares went as high as $172.05 and as low as $167.54, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $15.2 billion and now has 90.09 million shares outstanding. Wayfair Inc. (W) stock has gained 41.26 percent of market value in 21 trading days.
W stock has a trailing 3-year beta of 2.07, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$5.63 a share in the trailing twelve months. The stock’s value has surged 87.3 percent year to date (YTD) against a rise of 98.49 percent in 12 month’s time. The company’s shares still trade -2.36 percent away from its 1-year high of $172.79 and 178.74 percent up from 52-week low of $60.53. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Wayfair Inc. (W) will probably climb -9.32 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $195-month high price target. This represents a whopping 15.58 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $157.5, which represents a return potential of -6.65 percent when compared to the closing price of the stock of $168.72 on Wednesday, March 13. The lowest price target for the stock is $60 — slightly more than -64.44 percent from W’s current share price.
History has shown that shares in Wayfair Inc. have gone down on 9 different earnings reaction days and are predicted to add 0.13 percent when the company reports upcoming earnings. Investors will get their next glimpse of W’s Q1 earnings on May 07. Analysts are forecasting revenue to climb 36.6 percent to $1.92B in the fiscal first quarter, while earnings are seen soaring by nearly 75.82 percent to -$1.6 per share. It earned -$1.12 per share, better than the -$1.28, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.01B, better than the $1.97B analysts expected. Earnings are estimated to increase by -183.7 percent this year, 19 percent next year and continue to increase by 20.57 percent annually for the next 5 years.
The stock is currently hovering around the first support level of $166.82. Below this, the next support is placed in the zone of $164.93. Till the time, the W stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 76.12 on daily chart, which may remain a cause for concern. If the price breaks below $164.93 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $171.33 mark may result into a pull-back move towards $173.95 level.
Further, it is sporting a 2.24 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.24. 19.6 percent is the gross profit margin for Wayfair Inc. and operating margin sits at -7 percent. Along with this, the net profit margin is -7.4 percent.