Taking a Look at the Data Behind Wayfair Inc. (W)

Wayfair Inc. (NYSE:W) is an interesting player in the Services space, with a focus on Catalog & Mail Order Houses. The stock has been active on the tape, currently trading at $39.67, up from yesterday’s close by -1.73%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Wayfair Inc. (W) currently trades with a market capitalization of $3.39B. That value represents a market adjusting for revenues that have been growing by 45.00% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For W, the company currently has $292.82M of cash on the books, which is offset by $28.90M current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $14.85M over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of -0.71 on a per share basis this quarter. Perhaps, that suggests something about why 111.30% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, Wayfair Inc. recorded a 52-week high of 49.34. It is now trading 8.97 off that level. The stock is trading 37.22 its 50-day moving average by -3.15. The stock carved out a 52-week low down at 27.60.

In recent action, Wayfair Inc. (W) has made a move of +3.63% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 17.6, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 40.11M with 54.67% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of W.

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