A positive shift in market-share trends and management's newfound commitment to controlling expenses are among reasons Wayfair received an upgrade from JPMorgan on Monday. W stock soared.
"Our view that is W remains structurally relevant in the home retailing industry with a leading online assortment and advantaged supply chain," JPMorgan analyst Christopher Horvers said in a note to clients.
Boston-based Wayfair runs a variety of websites. The sites offer home furnishings, appliances and decor across a number of styles and price points. In addition to Wayfair.com, the company also runs Birch Lane, Joss & Main and Perigold.
Wayfair shares rocketed 26.8 % to close at 59.33 on the stock market today.
W Stock Soars After Workforce Cuts
On Friday, Wayfair cut its workforce by 1,750 employees, or 10%. That announcement caused W stock to surge 20%.
Altogether, recent decisions by Wayfair management "should cause a significant inflection in earnings revisions from steeply negative over the past two years to positive, on top of still-attractive valuation," he wrote.
Wayfair reported third-quarter results on Nov. 3 that matched earnings estimates but beat on revenue.
W stock has an IBD Composite Rating of 12 out of a possible 99.
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