Jim Cramer breaks down why he's keeping an eye on shares of Wayfair.
Wayfair (W) made it through our 'Fast-Paced Momentum at a Bargain' screen and could be a great choice for investors looking for stocks that have gained strong momentum recently but are still trading at reasonable prices.
Wayfair (W) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.47 per share a year ago.
Shares of Wayfair were climbing toward the highest prices seen in more than year after earnings beat expectations.
Wayfair (W) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Wayfair (W) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
A year after opening its first large-format physical retail location, Wayfair said it plans to open its third such store in early 2027.
Wayfair (W -2.26%) sources a significant percentage of its products from China, which faces a massive tariff increase.
I maintain a Hold rating on Wayfair due to solid execution and improving fundamentals, but near-term macro volatility and limited visibility hinder upside potential. Wayfair's Q1 2025 results showed flat revenue, improved gross profit margins, and better-than-expected adj. EBITDA, but free cash flow remains negative. Positives include increased supplier ad spending, sourcing flexibility, and improved capital structure, positioning Wayfair for long-term growth despite current challenges.
Wayfair's logistics expertise and cost focus have led to margin gains despite flat revenue, but declining active buyers and tariff risks remain concerns. The company has shut down unprofitable segments like Germany, impacting international revenue, but U.S. revenue grew 1.6% y/y. The stock's valuation at 11.1x EV/FY25 adjusted EBITDA is cheap but balanced by operating risks and lack of immediate growth catalysts.
W's first-quarter 2025 results benefit from a healthy performance in the U.S. segment.
The headline numbers for Wayfair (W) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.