Wayfair (NYSE:W) Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded Wayfair to “Strong Buy” and raised several long-term earnings forecasts, including FY2026 EPS to $0.72, FY2027 to $1.59, and FY2028 to $2.78.
• Wayfair reported quarterly EPS of $0.95, beating the $0.90 consensus estimate, while revenue reached $3.52 billion and increased 7.5% year over year.
• Analyst sentiment is broadly positive, with a “Moderate Buy” consensus rating and average price target of $119.89; however, insiders have sold approximately $14.8 million of shares over the past three months.

Wayfair (NYSE:W - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Tuesday,Zacks.com reports. Zacks Research also issued estimates for Wayfair's Q3 2026 earnings at $0.17 EPS, Q4 2026 earnings at $0.43 EPS, FY2026 earnings at $0.72 EPS, Q1 2027 earnings at ($0.01) EPS, Q2 2027 earnings at $0.45 EPS, Q3 2027 earnings at $0.52 EPS, Q4 2027 earnings at $0.63 EPS, FY2027 earnings at $1.59 EPS, Q1 2028 earnings at $0.41 EPS, Q2 2028 earnings at $0.65 EPS and FY2028 earnings at $2.78 EPS.

A number of other research firms also recently commented on W. BMO Capital Markets raised their target price on shares of Wayfair from $105.00 to $115.00 and gave the company a "market perform" rating in a research report on Wednesday, August 5th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $108.00 price target on shares of Wayfair in a research report on Tuesday, August 4th. Mizuho dropped their price objective on shares of Wayfair from $110.00 to $90.00 and set an "outperform" rating on the stock in a research note on Friday, May 8th. Royal Bank Of Canada lifted their price objective on shares of Wayfair from $78.00 to $92.00 and gave the company a "sector perform" rating in a report on Wednesday, August 5th. Finally, Robert W. Baird set a $116.00 price objective on shares of Wayfair in a research note on Wednesday, August 5th. Three analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $119.89.

Wayfair Stock Performance

Shares of NYSE:W opened at $104.13 on Tuesday. The firm's 50 day simple moving average is $94.88 and its 200-day simple moving average is $81.58. Wayfair has a one year low of $55.60 and a one year high of $119.98. The firm has a market cap of $13.74 billion, a PE ratio of -42.33, a price-to-earnings-growth ratio of 4.63 and a beta of 2.99.

Wayfair (NYSE:W - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.95 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.90 by $0.05. Wayfair had a negative return on equity of 3.40% and a negative net margin of 2.49%.The firm had revenue of $3.52 billion during the quarter, compared to analyst estimates of $3.47 billion. During the same quarter in the previous year, the business earned $0.87 earnings per share. Wayfair's quarterly revenue was up 7.5% on a year-over-year basis. Equities research analysts predict that Wayfair will post 0.75 EPS for the current fiscal year.

Insider Transactions at Wayfair

In other Wayfair news, CEO Niraj Shah sold 69,000 shares of the business's stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $103.36, for a total transaction of $7,131,840.00. Following the sale, the chief executive officer owned 360,137 shares of the company's stock, valued at approximately $37,223,760.32. The trade was a 16.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jon Blotner sold 5,925 shares of the company's stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $96.29, for a total transaction of $570,518.25. Following the transaction, the insider owned 117,344 shares in the company, valued at $11,299,053.76. The trade was a 4.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 143,925 shares of company stock valued at $14,834,198. Corporate insiders own 18.44% of the company's stock.

Institutional Investors Weigh In On Wayfair

Institutional investors and hedge funds have recently modified their holdings of the company. Piper Sandler & CO. acquired a new position in Wayfair in the 4th quarter worth approximately $34,000. Havemeyer Place LP acquired a new stake in Wayfair during the 4th quarter valued at approximately $39,000. EverSource Wealth Advisors LLC lifted its stake in Wayfair by 393.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 819 shares of the company's stock valued at $42,000 after acquiring an additional 653 shares during the period. Kestra Advisory Services LLC purchased a new stake in shares of Wayfair in the 4th quarter valued at $44,000. Finally, Larson Financial Group LLC boosted its holdings in shares of Wayfair by 30.0% in the 3rd quarter. Larson Financial Group LLC now owns 520 shares of the company's stock valued at $46,000 after acquiring an additional 120 shares during the last quarter. Institutional investors and hedge funds own 89.67% of the company's stock.

Wayfair News Summary

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Zacks raised most earnings forecasts. The research firm lifted its FY2026 EPS estimate to $0.72 from $0.33, FY2027 to $1.59 from $0.97, and FY2028 to $2.78 from $2.23. Estimates also increased for Q3 2026, Q4 2026, Q1 2027, Q2 2027, Q3 2027, and Q4 2027, signaling stronger expected profitability over the next several years.
• Positive Sentiment: Wayfair plans to open its 10th store. The company expects to launch an 85,000-square-foot location in Altamonte Springs, Florida, in 2028. The expansion supports Wayfair’s omnichannel strategy and could improve brand visibility and customer engagement. Wayfair Marks Major Milestone with Plans for 10th Store
• Neutral Sentiment: Zacks maintained a “Hold” rating. Although its forecast revisions were generally positive, the rating indicates that analysts do not see enough near-term upside to recommend buying the stock aggressively. The current-year consensus EPS estimate remains $0.75.
• Negative Sentiment: One longer-term estimate was reduced. Zacks cut its Q2 2028 EPS forecast to $0.65 from $0.71, highlighting some uncertainty in the pace of future earnings growth.
• Negative Sentiment: Heavy discounting could pressure margins. Recent coverage emphasizes Wayfair’s early Labor Day promotions and discounts of roughly 60% to 72%. These deals may support demand and traffic but could weigh on profitability if sustained.

Wayfair Company Profile

Wayfair Inc NYSE: W is an e-commerce company focused on home furnishings and décor. Through its platform, Wayfair offers a broad assortment of furniture, lighting, home textiles, kitchenware and decorative accessories. The company's portfolio includes flagship sites such as Wayfair.com, as well as specialty retail brands like Joss & Main, AllModern, Birch Lane and Perigold, each catering to distinct design styles and price points.

Founded in 2002 by Niraj Shah and Steve Conine under the name CSN Stores, the business rebranded as Wayfair in 2011 and went public in 2014.

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