Why Wayfair (W) is a Top Momentum Stock for the Long-Term

Group 1: Zacks Premium Overview - Zacks Premium offers various tools to help investors become more confident and informed, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The service includes Zacks Style Scores, which are indicators designed to assist investors in selecting stocks with the highest potential to outperform the market in the next 30 days [2] Group 2: Zacks Style Scores Categories - The Value Score focuses on identifying undervalued stocks by analyzing ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [2] - The Growth Score evaluates a company's financial health and future outlook by examining projected and historical earnings, sales, and cash flow [3] - The Momentum Score helps investors capitalize on price trends by analyzing one-week price changes and monthly earnings estimate changes [3] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [4] Group 3: Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [5] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B [6] - Stocks with lower ranks, such as 4 (Sell) or 5 (Strong Sell), may still have good Style Scores but are likely to face downward price pressure due to negative earnings outlooks [6] Group 4: Company Spotlight - Wayfair Inc. - Wayfair Inc., based in Boston, is a leading online retailer of home goods, including furniture and decor [7] - Currently rated 3 (Hold) by Zacks, Wayfair has a VGM Score of A and a Momentum Style Score of A, with shares increasing by 5.6% over the past four weeks [7] - The company has seen five analysts revise their earnings estimates upward for fiscal 2024, with the Zacks Consensus Estimate rising by $0.02 to $0.81 per share, and an average earnings surprise of 71.9% [7]