The Case for and Against WAYFAIR INC. (W)

WAYFAIR INC. (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 $47.02, up from yesterday’s close by 2.87%. 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 $4.03 Billion. That value represents a market adjusting for revenues that have been growing by 33.09 % 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 $279.84 Million of cash on the books, which is offset by $7.41 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-65.27 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $-0.81 on a per share basis this quarter. Perhaps, that suggests something about why 1.60% 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 2.32% off that level. The stock is trading $40.56 its 50-day moving average by -6.46%. The stock carved out a 52-week low down at $27.60.

In recent action, WAYFAIR INC. (W) has made a move of +16.13% 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 9.01, 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.

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