Is Wayfair Stock a Good Investment?
Wayfair Investment Advice | W |
- Examine Wayfair's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Wayfair's leadership team and their track record. Good management can help Wayfair navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Homefurnishing Retail space and any emerging trends that could impact Wayfair's business and its evolving consumer preferences.
- Compare Wayfair's performance and market position to its competitors. Analyze how Wayfair is positioned in terms of product offerings, innovation, and market share.
- Check if Wayfair pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Wayfair's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Wayfair stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Wayfair is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Wayfair Stock
Researching Wayfair's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 95.0% of the company outstanding shares are owned by institutional investors. The company recorded a loss per share of 4.01. Wayfair had not issued any dividends in recent years.
To determine if Wayfair is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Wayfair's research are outlined below:
| Wayfair generated a negative expected return over the last 90 days | |
| Wayfair has high historical volatility and very poor performance | |
| The company reported the annual revenue of 11.85 B. Total Loss to common stockholders was (492 M) with gross profit before all taxes, overhead, and interest of 3.57 B. | |
| Over 95.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from benzinga.com: This Analyst With 86 percent Accuracy Rate Sees Around 20 percent Upside In Booking Holdings - Here Are 5 Stock Picks For Last Week From Wall Streets Most Accurate Analysts |
Wayfair Quarterly Good Will |
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Wayfair uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Wayfair. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Wayfair's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 22nd of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 22nd of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Wayfair's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Wayfair's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2016-05-09 | 2016-03-31 | -0.32 | -0.36 | -0.04 | 12 | ||
2024-02-22 | 2023-12-31 | -0.16 | -0.11 | 0.05 | 31 | ||
2018-02-22 | 2017-12-31 | -0.52 | -0.58 | -0.06 | 11 | ||
2016-11-08 | 2016-09-30 | -0.6 | -0.54 | 0.06 | 10 | ||
2016-02-25 | 2015-12-31 | -0.14 | -0.07 | 0.07 | 50 | ||
2017-05-09 | 2017-03-31 | -0.56 | -0.48 | 0.08 | 14 | ||
2024-11-01 | 2024-09-30 | 0.13 | 0.22 | 0.09 | 69 | ||
2017-11-02 | 2017-09-30 | -0.45 | -0.54 | -0.09 | 20 |
Wayfair Target Price Consensus
Wayfair target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Wayfair's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 36 | Buy |
Most Wayfair analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Wayfair stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Wayfair, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationWayfair Target Price Projection
Wayfair's current and average target prices are 42.85 and 55.79, respectively. The current price of Wayfair is the price at which Wayfair is currently trading. On the other hand, Wayfair's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On Wayfair Target Price
Wayfair Analyst Ratings
Wayfair's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Wayfair stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Wayfair's financials, market performance, and future outlook by experienced professionals. Wayfair's historical ratings below, therefore, can serve as a valuable tool for investors.Know Wayfair's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Wayfair is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Wayfair backward and forwards among themselves. Wayfair's institutional investor refers to the entity that pools money to purchase Wayfair's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Great Hill Partners Llc | 2024-12-31 | 2.8 M | Bnp Paribas Investment Partners Sa | 2024-12-31 | 2.3 M | Spruce House Investment Management Llc | 2024-12-31 | 2.2 M | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 2.1 M | State Street Corp | 2024-12-31 | 1.7 M | Geode Capital Management, Llc | 2024-12-31 | 1.5 M | Ubs Group Ag | 2024-12-31 | 1.5 M | Two Sigma Investments Llc | 2024-12-31 | 1.3 M | Harbourvest Partners, Llc | 2024-12-31 | 1.1 M | Fmr Inc | 2024-12-31 | 14.9 M | Capital World Investors | 2024-12-31 | 13.5 M |
Wayfair's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current capitalization of 5.24 B.Market Cap |
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Wayfair's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.14) | (0.15) | |
| Return On Capital Employed | (0.42) | (0.44) | |
| Return On Assets | (0.14) | (0.15) | |
| Return On Equity | 0.18 | 0.29 |
Determining Wayfair's profitability involves analyzing its financial statements and using various financial metrics to determine if Wayfair is a good buy. For example, gross profit margin measures Wayfair's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Wayfair's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Wayfair's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Wayfair. Check Wayfair's Beneish M Score to see the likelihood of Wayfair's management manipulating its earnings.
Evaluate Wayfair's management efficiency
Wayfair has return on total asset of (0.0626) % which means that for every $100 of assets, it has lost $0.0626. This is way below average. Wayfair's management efficiency ratios could be used to measure how well Wayfair manages its routine affairs as well as how well it operates its assets and liabilities. Return On Equity is likely to climb to 0.29 in 2025, whereas Return On Tangible Assets are likely to drop (0.15) in 2025. At this time, Wayfair's Non Currrent Assets Other are fairly stable compared to the past year. Other Current Assets is likely to climb to about 173.1 M in 2025, whereas Non Current Assets Total are likely to drop slightly above 943.4 M in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (22.40) | (21.28) | |
| Tangible Book Value Per Share | (22.40) | (21.28) | |
| Enterprise Value Over EBITDA | (17.24) | (18.10) | |
| Price Book Value Ratio | (1.98) | (2.08) | |
| Enterprise Value Multiple | (17.24) | (18.10) | |
| Price Fair Value | (1.98) | (2.08) | |
| Enterprise Value | 3.1 B | 2.3 B |
Effective management at Wayfair has been a driving force behind its market achievements. We assess the correlation between management practices and financial success to determine the stock's value.
Beta 3.439 |
Basic technical analysis of Wayfair Stock
As of the 26th of February, Wayfair maintains the Mean Deviation of 2.8, market risk adjusted performance of 0.1097, and Downside Deviation of 3.79. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Wayfair, as well as the relationship between them. Please check out Wayfair downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if Wayfair is priced fairly, providing market reflects its latest price of 42.85 per share. Given that Wayfair has jensen alpha of 0.147, we strongly advise you to confirm Wayfair's prevalent market performance to make sure the company can sustain itself at a future point.Wayfair's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Wayfair insiders, such as employees or executives, is commonly permitted as long as it does not rely on Wayfair's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Wayfair insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Wayfair's Outstanding Corporate Bonds
Wayfair issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Wayfair uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Wayfair bonds can be classified according to their maturity, which is the date when Wayfair has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US94419LAF85 Corp BondUS94419LAF85 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand Wayfair's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Wayfair's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0402 | |||
| Market Risk Adjusted Performance | 0.1097 | |||
| Mean Deviation | 2.8 | |||
| Semi Deviation | 3.71 | |||
| Downside Deviation | 3.79 | |||
| Coefficient Of Variation | 2287.68 | |||
| Standard Deviation | 3.77 | |||
| Variance | 14.19 | |||
| Information Ratio | 0.0397 | |||
| Jensen Alpha | 0.147 | |||
| Total Risk Alpha | 0.1293 | |||
| Sortino Ratio | 0.0395 | |||
| Treynor Ratio | 0.0997 | |||
| Maximum Drawdown | 19.49 | |||
| Value At Risk | (6.15) | |||
| Potential Upside | 6.5 | |||
| Downside Variance | 14.37 | |||
| Semi Variance | 13.75 | |||
| Expected Short fall | (2.96) | |||
| Skewness | (0.14) | |||
| Kurtosis | 0.8388 |
| Risk Adjusted Performance | 0.0402 | |||
| Market Risk Adjusted Performance | 0.1097 | |||
| Mean Deviation | 2.8 | |||
| Semi Deviation | 3.71 | |||
| Downside Deviation | 3.79 | |||
| Coefficient Of Variation | 2287.68 | |||
| Standard Deviation | 3.77 | |||
| Variance | 14.19 | |||
| Information Ratio | 0.0397 | |||
| Jensen Alpha | 0.147 | |||
| Total Risk Alpha | 0.1293 | |||
| Sortino Ratio | 0.0395 | |||
| Treynor Ratio | 0.0997 | |||
| Maximum Drawdown | 19.49 | |||
| Value At Risk | (6.15) | |||
| Potential Upside | 6.5 | |||
| Downside Variance | 14.37 | |||
| Semi Variance | 13.75 | |||
| Expected Short fall | (2.96) | |||
| Skewness | (0.14) | |||
| Kurtosis | 0.8388 |
Consider Wayfair's intraday indicators
Wayfair intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Wayfair stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Wayfair Corporate Filings
F4 | 21st of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 20th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 13th of February 2025 Other Reports | ViewVerify | |
| 23rd of January 2025 Other Reports | ViewVerify |
Wayfair Stock media impact
Far too much social signal, news, headlines, and media speculation about Wayfair that are available to investors today. That information is available publicly through Wayfair media outlets and privately through word of mouth or via Wayfair internal channels. However, regardless of the origin, that massive amount of Wayfair data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Wayfair news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Wayfair relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Wayfair's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Wayfair alpha.
Wayfair Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Wayfair can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Wayfair Historical Investor Sentiment
Investor biases related to Wayfair's public news can be used to forecast risks associated with an investment in Wayfair. The trend in average sentiment can be used to explain how an investor holding Wayfair can time the market purely based on public headlines and social activities around Wayfair. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Wayfair's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Wayfair and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Wayfair news discussions. The higher the estimate score, the more favorable the investor's outlook on Wayfair.
Wayfair Maximum Pain Price Across May 16th 2025 Option Contracts
Wayfair's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Wayfair close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Wayfair's options.
Wayfair Corporate Directors
| Michael Sneed | Independent Director | Profile | |
| Michael Kumin | Lead Independent Director | Profile | |
| Landry Ngambia | Director Relations | Profile | |
| Anke Schaferkordt | Independent Director | Profile |
Already Invested in Wayfair?
The danger of trading Wayfair is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Wayfair is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Wayfair. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Wayfair is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Wayfair Stock Analysis
When running Wayfair's price analysis, check to measure Wayfair's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Wayfair is operating at the current time. Most of Wayfair's value examination focuses on studying past and present price action to predict the probability of Wayfair's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Wayfair's price. Additionally, you may evaluate how the addition of Wayfair to your portfolios can decrease your overall portfolio volatility.