W - Wayfair Inc.

NYSE - NYSE Delayed Price. Currency in USD
-0.18 (-0.17%)
At close: 4:02PM EST
Stock chart is not supported by your current browser
Previous Close106.92
Bid106.10 x 800
Ask106.23 x 900
Day's Range105.93 - 109.14
52 Week Range78.61 - 173.72
Avg. Volume2,396,732
Market Cap9.941B
Beta (5Y Monthly)1.82
PE Ratio (TTM)N/A
EPS (TTM)-8.73
Earnings DateFeb 27, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est108.11
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  • If You Had Bought Wayfair (NYSE:W) Stock Five Years Ago, You Could Pocket A 434% Gain Today
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  • Wayfair Stock Is Facing Trouble in Its Core Market

    Wayfair Stock Is Facing Trouble in Its Core Market

    Who knew furniture sales can be so exciting? Yet that's the perfect word to describe shares of furniture and home-goods e-commerce specialist Wayfair (NYSE:W). Early in 2019, I was on both sides of the investment thesis of Wayfair stock. Almost a year later, how should prospective buyers approach this wild entity?Source: Jonathan Weiss / Shutterstock.com First, a little personal history with these shares. Near the beginning of last year, I suggested that investors take a crack at Wayfair stock. Although the underlying company had some fiscal issues - namely, that it wasn't turning a profit - Wayfair was essentially the Amazon (NASDAQ:AMZN) of the home furnishings market.However, shares roared to unbelievable heights. While Wayfair was carving out a nice niche for itself, that alone didn't justify its mercurial rise. Furthermore, net income losses continued to widen, which didn't bode well for sustainability.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTherefore, I gave what I felt was the only reasonable idea, which was to lock in profits on Wayfair stock. For those that missed the initial run up, I suggested waiting. And I'm glad I did. Not too long after my warning, shares crumbled back down to earth. * 10 Cheap Stocks to Buy Under $10 From Mar. 21 through the end of December, Wayfair stock hemorrhaged more than 47%. But with so much red ink, contrarians are now tempted to go against the grain.Sure enough, Wayfair stock is one of the hottest commodities on Wall Street this month, jumping over 14%. Further, many of the headwinds that had impacted consumer sentiment in 2019, such as the troubling U.S-China trade war, have now eased considerably.With consumer confidence bouncing back from last summer's lows and with a strong economy, is now the time to buy Wayfair stock again? Underlying Real Estate Market Poses Problems for Wayfair StockTechnically, shares of Wayfair might have enough momentum for a few more ticks on the present rally. But in the months ahead, I'm now skeptical about this equity's viability.Here's my thought process: in order for Wayfair stock to continue moving higher, we obviously must have strong furniture/home goods demand. And the best confidence indicator for such a thesis is a robust real estate market. Simply, if more folks are buying homes, they'll spend cash furnishing it to their liking.Not surprisingly, the correlation between median home sales prices and furniture retail market revenue is incredibly strong. From 1992 through the calendar third quarter of 2019, I calculated a correlation coefficient of 87.3%. Essentially, wherever home demand goes, so too does the furniture/home goods market. Click to Enlarge Source: Chart by Josh Enomoto Interestingly, though, in prior years, the furniture market turned out to be leading indicator for real estate demand. Since late 1992, furniture and home furnishings sales jumped dramatically while homes sales prices steadily marched higher. But in calendar Q1 2006, furniture sales peaked. In contrast, home prices didn't peak until one year later.Now, I see the opposite situation: home prices are the leading indicator, while the furniture market is, in my view, fighting against gravity. I say this because so far, home prices have peaked in Q4 2017. Yet furniture sales are treading water and in my opinion, unconvincingly.If so, this dynamic doesn't augur well for Wayfair stock. As I mentioned above, the underlying company isn't the most fiscally stable example on Wall Street. Thus, the last thing it needs is trouble in real estate demand. Because the two markets are so heavily correlated, weakness in one could spark weakness in the other. Furniture Market Is DisappointingPerhaps I'm overthinking the relationship between real estate demand and the home furnishings market. In that case, let's just look at the latter sector.According to information compiled by the Federal Reserve Economic Data, furniture/home furnishings retail sales peaked in 2006 at $113.1 billion prior to the 2008 financial crisis. Based on estimates for Q4 2019, total sales last year amounted to $117.3 billion.In 13 years, annual furniture sales moved up less than 4%. To be sure, it's growth. However, it's a disappointing rate compared to other markets.Again, terms like disappointment is not what you want to hear if you're a long-term stakeholder in Wayfair. It's not as if the entire home furnishings sector is addressable exclusively for the company. Considering the ever-present threat of competition, a potentially shrinking market makes shares unusually risky.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * 5 Retail Stocks Placer.ai Thinks Can Win Big in 2020 * 6 Cheap Stocks to Buy Under $7 The post Wayfair Stock Is Facing Trouble in Its Core Market appeared first on InvestorPlace.

  • Business Wire

    Wayfair Schedules Fourth Quarter 2019 Earnings Release and Conference Call

    Wayfair Schedules Fourth Quarter 2019 Earnings Release and Conference Call

  • Wayfair Chooses Google Cloud to Help Scale Its Growing Business, While Creating Engaging Consumer (and Seller) Experiences
    PR Newswire

    Wayfair Chooses Google Cloud to Help Scale Its Growing Business, While Creating Engaging Consumer (and Seller) Experiences

    Google Cloud today announced that Wayfair (NYSE: W), one of the world's largest online destinations for the home, is using Google Cloud as the foundation for its new hybrid cloud strategy. Wayfair's move to the cloud will help the $8 billion global retailer scale its operations, while providing a richer experience for its 19 million active customers, 16,000 employees, and 11,000 suppliers.

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  • How Did Wayfair Inc (W) Compare Against Top Hedge Fund Stocks in 2019?
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  • Business Wire

    Wayfair Reports 36% Increase in Direct Retail Sales for Peak Five-Day Holiday Shopping Weekend

    Wayfair Inc. (NYSE: W), one of the world’s largest online destinations for the home, today reported a 36 percent increase year over year in direct retail gross sales, defined as dollars of order intake, for the five-day peak shopping period of Thanksgiving Day through Cyber Monday. Customers took advantage of the ease and convenience of Wayfair’s online shopping experience throughout the entire weekend to discover exceptional value across a wide range of product categories making Black Friday and Cyber Monday Wayfair’s highest revenue days ever. A record-breaking number of Wayfair customers shopped for every room of the house snapping up great deals across all categories including live Christmas trees and seasonal decor, furniture, rugs, bedding, housewares, large appliances and home improvement items. More customers than ever before took advantage of Wayfair’s award-winning mobile app for a seamless shopping experience from their phone or tablet with approximately one in four holiday weekend orders placed through the app.

  • Were Hedge Funds Right About Selling Wayfair Inc (W) Heading Into Q4?
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  • 3 Smart Money Stocks to Buy

    3 Smart Money Stocks to Buy

    There's little denying the so-called smart money on Wall Street has earned its reputation over time. And with this group's elite purchasing Beyond Meat (NASDAQ:BYND), Wayfair (NYSE:W) and New Relic (NYSE:NEWR) the past couple of quarters, it's time to follow those footsteps.Hedge fund Tiger Global Management is among the best in the business. Over the past three years its investments have led it to a best-in-breed ranking among large institutional investors with holdings of more than $10 billion. Specifically, the fund has returned nearly 22.50% annually since 2016. And over the past decade, this smart money operator has captured annualized gains of almost 18%.Sure, it would be easy enough to resent Tiger Global Management for generating its market-beating returns. The firm has resources and talent most of us can only dream about. And that can amount to an uneven playing field.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Lithium Stocks to Buy Despite the Market's Irrationality But when it comes to BYND, W and NEWR stock, I suggest not getting mad. Instead, use the price chart strategically and get ready to beat the smart money at their own game. Smart Money Stocks to Buy: Beyond Meat (BYND)Source: Charts by TradingView Tiger Global's latest 13F filing revealed the fund recently picked up 175,000 shares of faux-meat producer Beyond Meat. Today's investors are also on much stronger footing than the hedge fund after picking up shares north of $150 and possibly as high as nearly $240 during the period.Despite announcing a solid earnings beat in October, BYND stock tanked on worries tied to an expiring lockup period and competition entering the market. There's no guarantees BYND stock will prove to be the next Apple (NASDAQ:AAPL) or Costco (NASDAQ:COST), let alone wildly profitable for the smart money. But for today's investors, that's also irrelevant. In the aftermath, this $5 billion market leader looks technically ready to sizzle. BYND Stock Strategy: This smart money stock is currently forming a two-week inside pattern consolidation within a bullish hammer backed by an oversold stochastics crossover pattern. This price action could also reasonably mark a higher-low variation of a classic double-bottom. My advice is to buy BYND stock if shares can rally above the pattern high of $83.50.I'd also recommend using a stop just beneath the pattern low and exit the position beneath $73.50 in BYND stock if necessary. Ultimately, Fibonacci supports have all failed already. Moreover, being able to capitalize on a deeper bottoming variation if that's what is in the cards, is a smart money move. Wayfair (W)Source: Charts by TradingView Wayfair is the market's top dog in e-commerce for home goods and furniture. During the third quarter, the smart money piled into 510,000 shares. As the monthly chart hints, Tiger Global is also down big-time on this position after earnings painted a mixed picture that was less-than-well-received by Wall Street.The good news for today's investors? There's no denying the decline in shares offers a nice opportunity to buy W stock as it challenges key technical support on the price chart. Right now, Wayfair is testing last December's ubiquitous bottom -- its lifetime 62% Fibonacci level and trendline support for the last couple years. Coupled with stochastics that are on the cusp of a bullish crossover signal, W stock earns its place as a smart money buy. * 7 5G Stocks to Buy Now for the Future W Stock Strategy: My smart money recommendation would be to buy W stock on price confirmation of a monthly chart bottom. Conceivably, this could occur as early as next week. To contain downside risk off and on the price chart, setting a stop-loss beneath the pattern low is an equally smart money move. New Relic (NEWR)Source: Charts by TradingView In cloud-based software analytics outfit New Relic, Tiger Global sank its teeth into a meaty 2.92 million shares during the second quarter after shares were gutted following earnings. Of the three, NEWR stock also happens to be the smart money's only profitable long choice.For today's investors, the price chart suggests the smart money approach is to wait and similarly look to buy shares of New Relic on weakness. The weekly view hints NEWR stock is increasingly likely to turn lower in the near term. An overbought stochastics and challenge of former price support from 2018 makes shares prone to a pullback.NEWR Stock Strategy: Given our outlook, put NEW stock on the radar for purchase if a simple pullback pattern over the next couple to few weeks develops. I'd also suggest any future pattern-based entries are backed by a bullish stochastics setup. If those criteria are met, using the low of the pullback or an exit as loose as $54, with appropriate sizing, is another smart money move worth consideration.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy in December * 7 Unsteady Stocks Investors Should Consider Selling Before 2020 * 7 Entertainment Stocks to Buy to Escape Holiday Blues The post 3 Smart Money Stocks to Buy appeared first on InvestorPlace.

  • ‘Tiger Cub’ Chase Colemans Pulls the Trigger on Beyond Meat, Wayfair, and New Relic

    ‘Tiger Cub’ Chase Colemans Pulls the Trigger on Beyond Meat, Wayfair, and New Relic

    After cutting his teeth at Tiger Management, Chase Coleman become one of the “Tiger Cubs,” founding his own hedge fund in 2000, Tiger Global Management, with $25 million in seed money from his old boss. Since then, Coleman’s fund has grown to hold over $36 billion in assets under management. An important part of his successful strategy was a series of smart investments focused on long-term potential – his fund was an early investor in Facebook.In his most recent 13F filing, for the quarter ended September 30, Coleman’s fund revealed three new holdings which are sure to raise some eyebrows. Beyond Meat, Wayfair and New Relic have all generated plenty of buzz, along with real returns, but they each are facing serious headwinds, too. Not quite perfect storms of market chaos, but definitely some dark clouds of uncertainty on each of these companies.So, is Coleman right or wrong? We’ve opened up the database at TipRanks.com to find the latest takes from Wall Street’s analysts on all three of these stocks.Beyond Meat (BYND)A cleaner approach to our food and environment simply makes sense, and it’s hard to doubt the harshness of the industrialized animal husbandry. Beyond Meat was formed to correct this, and to provide a nutritious and sustainable food that also meets consumers’ desire for meat and meat products. Founded in 2009, the company has grown to a 5 billion dollar business, with its products on the shelves of Kroger, Meijer, and Target stores, among others, and in restaurants from TGI Fridays to Carl’s Jr. and A&W chains, to Del Taco.Coleman expressed his trust in Beyond Meat when his fund bought 175,000 shares of the company. BYND, which went public this past May at $25, peaked at $234 at the end of July. By the end of Q3, the period covered by the 13F filing, the shares were worth $148. BYND is trading at $80 now, making Tiger Global Management’s holding worth over $14 million.While a major hedge fund taking a large stake is a bullish sign, BYND has been showing bearish indicators recently. Wall Street’s analysts are clearly not convinced that Beyond Meat is going beyond even. Steven Strycula from UBS notes that BYND is a leader in its niche, pointing out that it has potential to disrupt the $1 trillion dollar-plus animal meat industry, but adds, “While we outline a robust revenue opportunity, we’re more cautious on Beyond Meat’s margin outlook as competition is intensifying, particularly from larger protein processors and packaged food peers who are likely to undercut Beyond Meat price points using excess capacity and a lower gross margin rate profile.” Strycula rates BYND a Hold along with an $85 price target, suggesting a modest upside of 5% for the stock. (To watch Strycula's track record, click here)Writing from William Blair, 4-star analyst Jon Andersen sees both potential and pitfall to BYND, with the pitfalls larger in the short term. He writes, “Our thesis is Beyond Meat represents a unique growth opportunity. This is due to its vast addressable market; strong value proposition; and rapidly developing brand and scale… valuation could limit stock price appreciation in the near term [on] our one-year horizon…”Overall, Beyond Meat has 13 recent analyst ratings, including 3 "buys," 8 "holds," and 2 "sells," adding up to a consensus view of Hold on the stock. Share are selling for $80, and the $113 average price target suggests a 40% upside, showing that, despite the headwinds, Wall Street still believes there is potential in this company and its products. (See Beyond Meat stock analysis on TipRanks)Wayfair (W)Wayfair leads the e-commerce market in home goods and furniture. It has no physical stores, but operates a network of offices and warehouses in the US and Canada, the UK and Ireland, and Germany. In its Q3 report, Wayfair reported an impressive year-over-year gain of 36% in direct retail revenue, to $2.3 billion for the quarter. Gross profits were up 23.4%, to $539.9 million, and active customers increased 38% to 19.1 million. In cash, cash equivalents, and investments, Wayfair listed $1.3 billion.A 36% gain in net revenues is a hopeful sign, especially coming after the 40% gains in Q2, and underlies Coleman’s acquisition of 510,000 shares of W in the third quarter. His fund now holds a $42 million stake in Wayfair. That was the good news. The bad news is, the company’s GAAP net loss was $272 million. Total operating expenses increased 48% from $538 million to $799 million. That expenses are rising so much faster than revues and gross profits is an ominous sign for the future. Wayfair’s net loss, which has been increasing since Q1 2018, is accelerating even as the company increases sales. Increased expenses are only one obstacle that Wayfair is facing; while the US-China trade issues get the headlines, the Trump Administration has also used tariffs, with less fanfare, in trade negotiations with the EU. As an international e-commerce leader, Wayfair is peculiarly sensitive to tariffs and duties.4-star Barclays analyst Adrienne Tennant is less than impressed with W stock. She writes, “We see W at a crossroads… to fuel top-line growth, it must continue to invest in acquiring customers as well as expanding into new categories and geographies… Simply curtailing spending to be in line with sales growth only results in the same EBITDA loss margin as the prior year... We think the mix of necessary spending and top-line volatility next year makes W uninvestable.”Tennant places a Sell on W, with a decidedly bearish $76 price target – indicating a downside potential of 9%. (To watch Tennant's track record, click here)Wall Street is not as bearish on W as Tennant, but is not convinced on this stock, either. W holds a Moderate Buy from the analyst consensus, based on 12 "buy" ratings – but also 8 "holds" and 2 "sells." Shares sell for $83, and the $106 average price target suggests an upside of 27%. (See Wayfair stock analysis on TipRanks)New Relic (NEWR)Public since December 2014, New Relic is tech company based in Silicon Valley. It offers cloud-based software analytics, allowing customers to track app performance online using the popular SaaS business model. For the fiscal year ending in March 2019, New Relic reported over $479 million in gross revenues.Fiscal 2020, however, started with some serious disappointment. While Q1 revenues were up 30% and met expectations at $140 million, the drilldowns were not so good. NEWR’s free cash flow of $19 million missed the estimate by $5 million; billings, at $125 million, were below the consensus of $131 million; and the company’s earnings beat reflected lower expenses rather than increased sales. NEWR missed its target on new customers for the quarter. Shares dropped by one third after the Q1 report.That drop was seen by Coleman and Tiger Global Management as a buying opportunity, because in Q2 the hedge purchased 2.92 million shares of NEWR, an acquisition worth over $196 million now. The NEWR purchase is the only one of the three in this list that has gained value since Coleman’s fund picked it up.The company’s recent Q2 report sheds some light on the stock’s relative strengths. NEWR showed an EPS of 24 cents, soundly beating the 15-cent expectation and nearly double the year-ago figure. Revenue was up to $145.8 million, a 4% sequential gain. Still, this stock is down 16% year-to-date. The company is introducing a new platform for its software products, and management has not yet convinced investors that the transition is smooth.Raimo Lenschow, 5-star analyst from Barclays and rated 20 overall in TipRanks’ database, takes a cautionary stance on NEWR. He writes, “We believe New Relic shares will likely come under pressure in the near term given… we believe Q2 didn’t provide evidence of moderating competitive headwinds, and it is still the very early stages of new platform adoption. Hence, we continue to expect a long recovery ahead and see limited upside… in the near to mid-term.” Lenschow’s $65 price target is bearish, and implies a downside potential of 3% to the stock.For the most part, the Street’s analysts are still somewhat bullish on NEWR. The stock’s Moderate Buy consensus rating is built on 10 "buys," a strong base that is moderated by 3 "holds" and 1 "sell." The $76 average price target suggests a potential upside of 13% from the $67 trading price. (See New Relic stock analysis on TipRanks)

  • Warren Buffett Finds Wrong Elephant

    Warren Buffett Finds Wrong Elephant

    (Bloomberg Opinion) -- Warren Buffett’s Berkshire Hathaway Inc. has $128 billion of cash. There is almost no purchase too large for the company — in fact, large is exactly what investors are waiting for. And yet, the only stock Berkshire bought last quarter was a dinky retailer, RH.Berkshire disclosed in a regulatory filing Thursday that it took a $212 million stake in RH, a California-based home-furnishings chain valued at $3.3 billion. Buffett could even buy the entire company and it’d still be a puny deal for him. But it was a big deal for RH, because the shares surged 9% in after-hours trading and held near that level early Friday morning.I admit I didn’t even recognize the retailer’s name at first. RH used to be called Restoration Hardware, a place that sells $6,000 linen sofas and elongated wooden dining tables with “forthright silhouettes.” The company shrank its name and supersized its stores, an effort to target a more upscale clientele. It’s even installed some on-site restaurants, a little nourishment to help one ponder a new addition to the ski house. That’s partly what makes RH such a funny investment for Buffett. Not only is the billionaire known for his down-to-earth lifestyle — he’s lived in the same fairly modest house for more than 60 years — but he’s also usually drawn to businesses that mirror the America he sees from his unassuming Omaha office: railroads, truck stops, Dairy Queens, the Nebraska Furniture Mart. Furthermore, Berkshire tends not to waste time on minority stakes in small, specialty chains; its only other retail holdings are Amazon.com Inc. and Costco Wholesale Corp., companies valued at $870 billion and $134 billion, respectively. RH was the only new position Berkshire took in the latest quarter, aside from buying common shares of Occidental Petroleum Corp., in which it already purchased $10 billion of preferred equity (part of a financing deal to assist the oil and gas explorer in its takeover of Anadarko Petroleum Corp.). All in all, it was another dull period for Berkshire, whose last splashy stock pick was Amazon earlier in the year. With U.S. equities still on the rise, Buffett, 89, and his investing deputies are struggling to find cheap candidates. Whoever made the call on RH — Todd Combs, Ted Weschler or the Oracle himself — he may have had prescient timing. At the end of May, RH’s price-to-earnings ratio hit a low, and the shares have doubled since then, taking a big leg up in September. That said, RH’s overnight gains drove the shares above analysts’ average target level, which is $181 apiece. “The business remains tough to predict and we believe expectations may now be somewhat elevated,” Bobby Griffin, an analyst for Raymond James & Associates who has the equivalent of a “hold” rating on RH, wrote in a Sept. 11 report, citing the China tariffs and a slowdown in high-end U.S. housing. Similarly, Gordon Haskett Research Advisors wrote to clients Sept. 10 that the firm finds other retailers such as Wayfair Inc., Williams-Sonoma Inc. and At Home Group Inc. more attractive. At the end of the day, though, no matter how RH performs, it won’t have much of an impact on Berkshire’s portfolio. Another quarter has passed without a major acquisition by Berkshire, its cash pile hitting a record yet again. RH may sell a $449 wool felt elephant, but it isn’t the kind of elephant Buffett is after. The wait continues.To contact the author of this story: Tara Lachapelle at tlachapelle@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Wayfair Unveils New Mobile App Features, Makes Shopping for Home from Anywhere Easier Than Ever Before
    Business Wire

    Wayfair Unveils New Mobile App Features, Makes Shopping for Home from Anywhere Easier Than Ever Before

    Wayfair Inc. (NYSE:W), one of the world’s largest online destinations for the home, today introduced new features to its mobile shopping app that make it even easier for consumers to discover products and design their rooms on the go. With seamless access to simple and intuitive features including a breakthrough augmented reality (AR) tool, a central hub for all camera-based features and Room Planner 3D for mobile, home inspiration is within reach from anywhere as shoppers harness the power of innovative design tools - all from the Wayfair app.

  • 5 Retail Stocks Getting Nothing but Coal This Holiday Season

    5 Retail Stocks Getting Nothing but Coal This Holiday Season

    It's already here. The sights. The sounds. The red cups. The holiday spending frenzy is once upon us -- whether we are ready for it or not. For many retail stocks, this is the most critical period all year. The don't call it Black Friday for nothing. However, the consumer spending environment continues to get even more cutthroat and hard to navigate.Thanks to online and omni-channel shopping, mobile commerce, one- and two-day shipping and a host of other reasons, many retail stocks are already suffering. The sector is quickly becoming a bifurcated industry -- with haves and have-nots fighting for survival. And the holiday season has only exacerbated this fight. Extra discounting, sales and "door-busters" make a tough environment even tougher.That means there are several retail stocks that aren't going to fair too well over the next few months. And in a few cases, they may not be around much longer.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor investors, knowing which companies to avoid can be just as important as knowing which stocks to buy. * 7 Large-Cap Stocks to Give a Wide Berth And with that, here are five retail stocks that should get a big lump of coal this holiday season. J. C. Penney (JCP)Source: Supannee_Hickman / Shutterstock.com After Sear's bit the dust, it's easy to dunk on J. C. Penney (NYSE:JCP) as being the next major retail stock to meet its maker. Like Sear's, JCP is an old-fashioned department store in a world that no longer supports that style of retail concept. Big discounters like Walmart (NYSE:WMT) and e-commerce giants like Amazon (NASDAQ:AMZN) simply do it better. And in that, J. C. Penney has been suffering for years.The problem is, the suffering may finally be hitting a critical level.Debt at JCP remains an issue. As of last quarter, the retailer had roughly $3.6 billion in long-term debt on its balance sheet and about $1 billion in operating lease obligations. The problem is that JCP only has about $175 million in the bank and short-term investments. That's not exactly a great ratio of debt to cash. Nor is that great when sales continue to slide as e-commerce eats its lunch.Even worse is that sort of debt makes it harder for JCP to expand and update in a meaningful way. Sure, the firm has a new store concept, but it simply lacks the funds to roll it out to a variety of locations. Target (NYSE:TGT) spent more than $7 billion remodeling its stores to make them "hipper" and omni-channel friendly. JCP simply doesn't have that kind of cash or time.With JCP already talking to creditors about restructuring its debts, sales continuing to sleep and other rivals getting strong, it's only a matter of time until the firm has to pack up. For investors, JCP is easily a retail stock to avoid this holiday season. Wayfair (W)Source: Jonathan Weiss / Shutterstock.com It's not that Wayfair (NYSE:W) is a bad choice among retail stocks, it's just that a few issues may be hitting its torrid pace of growth. In this case, we're talking about costs across a variety of fronts.While its revenues have continued to climb, W stock has started to see its margins erode and various costs start to increase. As with JCP above, playing in the e-commerce world is an expensive game. Unfortunately for Wayfair, it's now being forced to shell out more to keep those revenues climbing.Last quarter, Wayfair was forced to spend 58.7% more on technology, infrastructure and other expenses related to gathering sales and getting them to consumers fast. Advertising spending jumped more than 12%. Meanwhile, the actual costs of its goods managed to jump as the trade war continues to slog on. All in all, the issues with costs have made U.S. margins a fat negative 3% for W.That doesn't instill much confidence heading into a slowing consumer environment. Add in the fact that other rivals continue to spend more in order to boost shipping, fulfillment and ordering ease, and you start to see a worrisome picture for Wayfair. No wonder why shares cratered the day it announced its results and poor outlook. * 7 Beverage Stocks to Stock Up On W stock isn't a bad retailer overall. It's just that the firm is dealing with some things outside its control. And because of that, it could be rocky for the firm going forward. Shares may still have more room to drop. Gap (GPS)Source: Alex Millauer / Shutterstock.com The middle isn't exactly a great place to be these days. Consumers either want high-end products or deep bargains. For retail stocks offering clothing like the Gap (NYSE:GPS), this is a tough pill to swallow.Sales continue to decline at Banana Republic and Gap as these brands struggle to find an audience.The bright spot for GPS stock has continued to be its bargain-brand Old Navy. These days, Old Navy accounts for roughly 50% of Gap's total sales -- with the other brands bringing in the rest -- around $7.9 billion from Old Navy against $8.7 billion for the other brands. But the pace of revenue growth at Old Navy has been brisk.To that end, GPS has decided to spin out Old Navy as a separate company. And that might seem like a good idea at first. The problem is, Gap really needs those assets to keep the ship moving. GPS is profitable at its other brands, but their slow decline is a spot for concern. Secondly, the hallmark of Gap's online operations has been the one-bag integration of all its brands. Picking up incremental sales and cross-selling has worked in its favor.What's worst is that even execs at Gap aren't sure of the spinoff plans. CEO Art Peck abruptly resigned from the company.With reduced guidance, slowing traffic and no real plans to get out of its funk, GPS is one retails stock that will continue to face some big issues. Those issues will take center stage during this holiday season. Chico's (CHS)Source: Kristi Blokhin / Shutterstock.com "OK Boomer" maybe be a rallying cry among America's youth, but it's also being directed towards a bunch of retail stocks. Take Chico's (NYSE:CHS) for example.Chico's runs a variety of stores -- including its namesake, Soma and White House Black Market. Generally, these brands fall under the higher-end and casual work clothing umbrellas. The problem for CHS is that this sort of style really isn't in focus anymore with millennial and Generation Z shoppers. With joggers now an office staple and bralettes replacing traditional intimate apparel, Chico's is facing a real problem. It doesn't have a core audience anymore. The Boomers are gone and the younger generations aren't buying.Last quarter alone, sales declined by 6.1%. This follows the trend of continued lower quarterly sales figures.Like many of the retailers on this list, CHS is realizing these lower sales at a time when debts and costs have risen. Thanks to its high-end nature, most of its store frontage is in upper-scale malls. Thanks to this, rent expenses are higher and produces more drag on its bottom line. No wonder why Chico's has started closing stores -- 53 have closed over the last three months. * These 7 Stocks to Buy Were Big Winners This Earnings Season In the end, Chico's is a brand without any buyers. With no real plans to turn the ship around, CHS stock could be a real drag this holiday season. Pennsylvania Real Estate Investment Trust (PEI)Source: jayk67 / Shutterstock.com If many retail stocks are suffering, then the owners of malls and shopping plazas must be really feeling the heat. Pennsylvania Real Estate Investment Trust (NYSE:PEI), also known as PREIT, is a prime example of the carnage being felt by the mall owners.PEI started out as a sprawling regional mall operator and as the recession hit, it took great steps to improve its portfolio of properties. That worked in raising its average sales per square foot and boosting quality of tenants. This worked great and the stock rebounded.And then the bottom dropped out for PREIT.This year, we've seen a variety of retailers such as Payless, Gymboree, Things Remembered and now Forever 21 file for bankruptcy. All of which are fodder for PREIT's style of malls. These closes are starting to once again hurt PEI's bottom line.For the third quarter, PREIT saw its same-store net operating income decline by 5.8% year over year. That decline doesn't exclude lease terminations. And with that, decline, funds from operations -- or the cash that the REIT has to deliver to investors as dividends -- dropped by 34% year-over-year. This follows a 44% year-over-year decline in FFO for the second quarter.PEI stock and its juicy 14% dividend is in trouble. This proves that the carnage in retail stocks is wide reaching.At the time of writing, Aaron Levitt had a long position in AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Give a Wide Berth * 7 Potential New Stocks That Should Not Go Public * 5 Chinese Stocks to Buy Surging Higher The post 5 Retail Stocks Getting Nothing but Coal This Holiday Season appeared first on InvestorPlace.

  • The Recent Pullback in eBay Stock May Provide an Opportunity

    The Recent Pullback in eBay Stock May Provide an Opportunity

    Shares of e-commerce marketplace eBay (NASDAQ:EBAY) started off 2019 with a bang, as revenue and margin trends at the company materially improved behind new growth initiatives and disciplined cost control. Through the end of July, eBay stock was up about 45% year-to-date.Source: ShutterStockStudio / Shutterstock.com Then, the bad news started to roll in.First, global trade tensions escalated in August 2019, and that created unease across the entire global economy and stock market. Second, eBay's CEO Devin Wenig stepped down in September. Third, in October, eBay reported mixed numbers which showed that both the revenue growth and margin expansion narratives were slowing for a variety of a reasons.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe convergence of these three headwinds over the past three months has put an end to the red-hot 2019 eBay stock rally. From their late July highs, shares have since shed about 15%.Is it time to buy the dip? I think so.In the big picture, nothing about the past three months materially changes the long-term growth fundamentals for eBay stock. Earlier this year, those fundamentals implied that eBay stock was fairly valued around $40 by the end of 2019. The same is true today. Thus, with eBay stock plunging toward $35, this dip looks more like an opportunity to buy at a discount than anything else. Don't Overreact to Near-Term PainThe past three months have not been good for eBay. Growth is slowing and will remain weak for the foreseeable future. But, the big-picture fundamentals here remain solid. That's all the stock needs to be worth buying here. * 7 Beverage Stocks to Stock Up On Third-quarter numbers reported in October confirmed that the eBay growth narrative is slowing. Specifically, the gross merchandise value growth rate dropped 2%, although it was up 5% in 2018 and flat in the second quarter. Organic revenue growth rates slipped to 3%, from 6% in 2018 and 4% last quarter. The culprit behind the slowdown? The implementation of new internet sales taxes across a variety of states, which has disproportionately disadvantaged small sellers and forced those small sellers to raise prices. Most of eBay's merchants are small sellers, so average transaction prices across the ecosystem have gone up, which has resulted in less buying across the whole platform.That's not a great dynamic.But, it's a near-term phenomena. Internet sales taxes are being enacted in most large states. Right now, because the taxes are new, they are causing noticeable price hikes. These price hikes will weigh on growth rates over the next few quarters.But, as these taxes become old news, the prices hikes will phase out, and market prices will normalize. As they do, this headwind will disappear, buying action will pick up on eBay and revenue growth rates will move higher. At the same time, management remains committed to cost-cutting and this sustained commitment to cost-cutting implies that margins will continue to expand over the next few years. The Fundamentals Remain SolidThus, we return to this idea that the big-picture, long-term fundamentals have not changed for eBay.Those fundamentals are quite simple. EBay is the internet's version of a global garage sale and it employs this garage sale model better than anybody else. Some consumers don't like the garage sale model. For those consumers, there's Amazon (NASDAQ:AMZN), Wayfair (NYSE:W) and Etsy (NASDAQ:ETSY). But, some consumers do love the garage sale model. For them, there's eBay.To be sure, the market of consumers who prefer the online garage sale model is clearly limited. That's why eBay is growing at a much slower rate than those other platforms. But, eBay is still growing its buyer base, and this sustained growth implies staying power in the secular growth e-commerce market.Staying power in the e-commerce market implies growth going forward.Given historical trends, broader retail and e-commerce sales growth rates, and eBay's competitive positioning, I think eBay most reasonably projects as a low single-digit revenue grower over the next few years. The expense base should continue to drop behind marketing optimization, more focused investments and more effective procurement. Margins will consequently move higher with steady pace. Buybacks will stick around.This combination ultimately implies that eBay can drive earnings per share towards $4 by fiscal 2025. Based on a market average 16 forward multiple, that equates to a fiscal 2024 price target for EBAY stock of $64. Discounted back by 9% per year (one point below 10% to account for the yield), that implies a fiscal 2019 price target of over $40. Bottom Line on EBAY StockIt's been a rough three months for eBay stock. But, while recent developments do imply limited growth over the next few quarters, they do not change the big-picture fundamentals here. Those big-picture fundamentals imply that eBay stock is worth about $40 today. Thus, for long-term investors, the recent pullback is nothing more than a buying opportunity.As of this writing, Luke Lango was long EBAY and ETSY. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post The Recent Pullback in eBay Stock May Provide an Opportunity appeared first on InvestorPlace.