Trade-Ideas LLC identified Wayfair ( W) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Wayfair as such a stock due to the following factors:

  • W has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $65.5 million.
  • W has traded 98,397 shares today.
  • W is up 4% today.
  • W was down 5.6% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in W with the Ticky from Trade-Ideas. See the FREE profile for W NOW at Trade-Ideas

More details on W:

Wayfair Inc. engages in the e-commerce business in the United States. It offers approximately seven million home products under various brands. Currently there are 6 analysts that rate Wayfair a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Wayfair has been 1.2 million shares per day over the past 30 days. Wayfair has a market cap of $3.5 billion and is part of the services sector and retail industry. Shares are down 18.2% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Wayfair as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from the ratings report include:
  • The gross profit margin for WAYFAIR INC is rather low; currently it is at 24.95%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.09% trails that of the industry average.
  • W has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 1.00 is somewhat weak and could be cause for future problems.
  • Compared to other companies in the Internet & Catalog Retail industry and the overall market, WAYFAIR INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 64.41% to $90.37 million when compared to the same quarter last year. In addition, WAYFAIR INC has also modestly surpassed the industry average cash flow growth rate of 62.31%.
  • This stock has increased by 89.14% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in W do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.