#1 - Wayfair (NYSE:W)
Wayfair (NYSE:W) stock is up over 200% for the year and some investors may be thinking the run is over. Not so fast. And by that, I mean that you shouldn’t give up on the stock, but you also may not want to expect 200% growth in the next six months.
E-commerce is only going to get stronger. And the appeal of Wayfair is that it is exclusively an e-commerce platform. There are no brick-and-mortar stores for the company to support. This means that Wayfair isn’t a “bargain basement” site. It can offer products at a range of price points, but can still offer a discount.
And the other thing to like about Wayfair is its focus on a specific niche, in this case, furniture.
As more consumers have been spending time at home, there’s been more attention being paid to updating their furnishings. The stock also stands to benefit from the recent surge in new home sales.
Prior to the pandemic, Wayfair was not a profitable company, but it surged into the green in its most recent quarter. In its earnings call, the company was conservatively estimating 20% higher net revenue growth rates. And with the company sitting on $2.4 billion in cash, cash equivalents, and short-term investments while generating $1.1 billion in free cash flow, there’s reason to believe that the growth isn’t over.
About Wayfair
Wayfair Inc provides e-commerce business in the United States and internationally. The company offers approximately thirty million products for the home sector. It offers online selections of furniture, décor, housewares, and home improvement products through its sites consisting of Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional.
Read More - Current Price
- $42.60
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 12 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $60.28 (41.5% Upside)
