Those who took advantage of the holiday weekend to do some furniture shopping may not have caught this, but Wayfair (NYSE:W) landed double-digit gains in Tuesday afternoon trading. The gains came as the result of a recent honor from JPMorgan, which put Wayfair on the Analyst Focus List.
Analysts recently had some meetings with Wayfair’s upper management and came away downright enthusiastic about its long-term potential. There was certainly concern about the slumping economy worldwide and supply chain issues that are still in play even almost two years post-Covid. However, Wayfair management managed to alleviate those concerns and make itself look like it can survive the likely upcoming onslaught.
Given that Wayfair has been pursuing some pretty aggressive discounting, that might be enough to get it over the hump of a bad economy. In fact, the recent Memorial Day sale featured discounts as high as 70% and included price cuts on everything from home goods to patio décor. While certainly, people stocked up on plenty of that three years ago, there’s likely room for some replacements in play. And positioning itself as a “staycation leader” going into summer might be a smart move in a downturn.
Analysts aren’t all as sure as JPMorgan is, however. Currently, Wayfair stock is rated a Moderate Buy thanks to a mix of seven Buy ratings, seven Holds, and two Sells. Those who invest in Wayfair stock, however, can expect 21.52% upside potential thanks to its current average price target of $49.29.
