Wall Street Expects This Beaten-Down Stock to Soar 361%
The S&P 500 is down around 23% year to date, and that's an average of the 500 companies in the index. Many of its stocks are down around that much, although some are gaining, and some are posting massive declines. Online furniture retailer Wayfair (NYSE: W) is part of the latter category, with its shares plunging 82% so far this year after already beginning to lose steam last year. But there may be lots of growth in store for this struggling stock.
The furniture platform was growing fast before the pandemic started. Its business is completely online, which saves on the high costs of showrooms. Wayfair functions as a "dropship" platform for thousands of suppliers that partner with it to display their products on its website, and many of them use its robust logistics network to get the products to customers. Wayfair invested heavily in customer-oriented features, knowing that without a showroom, it needed to make the concept of buying furniture online attractive. It focuses on an easy shopping experience, with features that include augmented reality functions to envision how pieces look in rooms and image overlays with measurements to get a clear picture of space.
It was well positioned to soar during the pandemic when customers focused on home improvement and looked to digital retailers to make it happen. It posted excellent results during that time, with revenue increasing 55% year over year in 2020. It also became profitable as it scaled.
Source Fool.com
