Wayfair Inc. (W) shares are trading at lower $265.87 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $309.60.
To add more color to this target, the company’s high over the last year is $349.08 and the low is $21.70. Over the last 52 weeks, W is up 132.89% while the S&P 500 is up 14.92%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, W reported a profit of $1.32 billion. Wayfair Inc. also saw revenues increase to $4.3 billion. In addition, W has free cash flow of $774.15 million as of 06-2020. The company’s EBITDA came in at $396.07 million which compares well with its peers.
W booked profit margins of -5.40%, its Return on Equity (ROE) is 68.50%, and its Return on Assets is -18.80%. All told, it is clear that, W needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. W has a short ratio of 5.99 and outstanding shares of 94.83M.
W has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.15 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -7.26. Wayfair Inc. W also noted assets of $4.38 billion at the end of the last quarter. Investors should also keep an eye on sector updates as W has historically followed its peers on positive news.
All told, Wayfair Inc. W has strung together solid data and demonstrated underlying fundamentals. At its current valuation, W represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Wayfair Inc. W is now commanding a market cap of 25.44B and a float of 63.41M. W is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of W stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in W, either long or short, and we have not been compensated for this article.