Analysts Turn Bullish on Wayfair Stock Before Earnings

Options traders are blasting the security today

Digital Content Manager
Jul 31, 2023 at 10:54 AM
facebook X logo linkedin

Wayfair Inc (NYSE:W) is up 3.9% to trade at $75.87 at last check, after Piper Sandler upgraded the stock to "overweight" from "neutral," and raised its price target to $97 from $35. The firm noted a seemingly stabilizing furnishings industry and improving sales for the company. Plus, TD Cowen yesterday raise the equity's price target to $60 from $42.

These bull notes come ahead of Wayfair's second-quarter earnings report, which is due out before the open on Thursday, Aug. 3. The stock finished half of its last eight next-day sessions higher, including a 15.8% surge in May. Shares averaged a 11.5% move during the past two years, regardless of direction, but this time the options pits are pricing in a bigger-than-usual move of 14.8%.

More upgrades and/or price-target hikes could be on the way, too. Coming into today, 14 of the 23 analysts in question sport a tepid "hold" rating, while the 12-month consensus target price of $59.21 is a 22.2% discount to current levels. A short squeeze may also come into play, as the 24.87 million shares sold short account for 31.9% of the Wayfair stock's available float.

The security earlier hit its highest level since August 2022, with support from the 20-day moving average. Now pacing for its third-straight daily gain, W is up 129.7% this year.

Drilling down to today's options activity, 5,798 calls and 6604 puts have been traded, or double the volume that's typically seen at this point. The weekly 8/4 75-strike call is the most active contract, with positions opening there, followed by the August 55 put.

It's also worth noting the security's Schaeffer's Volatility Scorecard (SVS) sits at a 86 out of 100, meaning it has exceeded option traders' volatility expectations over the past year.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI