Bull Notes Lift Wayfair, Etsy Stocks Before Earnings

Most analysts are still bearish on both stocks, however

Feb 20, 2018 at 10:15 AM
facebook twitter linkedin


Shares of Wayfair Inc (NYSE:W) and Etsy Inc (NASDAQ:ETSY) have outperformed over the past year, and analysts are expecting more upside ahead as both companies prepare to report earnings over the next week. Let's take a quick look at W and ETSY stocks today, and how Wall Street is gearing up for the upcoming quarterly updates.

Wayfair Hits New High After Price-Target Hikes

Wayfair this morning saw its price targets increased to $100 at BofA-Merrill Lynch and to $98 at Wedbush. As such, the stock is trading up 1.5% at $98.94, earlier touching a record high of $99.44. The shares were already up 143% over the past year coming into today, with a recent pullback contained by the 20-day moving average, a trendline that's only been breached once on a closing basis since mid-November.

Still, there's plenty of negativity remaining in the analyst community. Of the 18 brokerage firms in coverage, half still consider the stock just a "hold." Plus, the average 12-month price target sits all the way down at $88.85. Taken together, this would seem to suggest additional bull notes could be coming down the pike for the e-commerce issue.

It will help if the company announces a strong quarter when it reports earnings Thursday morning. Last quarter, however, the shares fell 15.5% in the session after earnings.

Etsy Analysts Mostly Skeptical Before Earnings

As for Etsy, D.A. Davidson this morning upped its price target to $26 from $20 -- territory the stock hasn't explored since right after its initial public offering (IPO) back in April 2015. So far today, ETSY is up 2.2% at $21.43, putting it within striking distance of its Dec. 21 peak of $21.86. The equity has outperformed over the past year, adding roughly 66%.

But most analysts remain bearish. In fact, just three of the 11 brokerage firms in coverage recommend buying the shares, and the stock is now trading above its average 12-month price target of $19.07. As such, it could also see more bull notes in the near future. The company is slated to report earnings after the close next Tuesday, Feb. 27. Last quarter, Etsy stock fell 1.7% the day after earnings.

 

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!