Wayfair Trending Lower and Fundamentals Support the Downward Move
Internet retailer Wayfair (NYSE: W) has seen its stock trend lower since the beginning of October. The shares fell from the $150 area to a low of $76.60 in November. The stock bounced back from that low and moved back above the $100 level before falling again in December.
If you connect the highs from October and December, you get what appears to be the upper rail of a downward sloped trend channel. The lower rail isn’t as clear cut as there are two possibilities. One parallel line connects the lows from mid-October and December and another one connects the previously mentioned low in November with an earlier low in the month.
You can also see on the chart that the stock struggled to move much beyond the 50-day moving average in early December and now the upper rail is just above the moving average.
The daily stochastic readings are in overbought territory, but they just made a bearish crossover and that was the scenario back in early December as well.
I chose to use the higher of the two upper rails on the chart above because that would be my minimum target on a bearish trade. If it goes lower, that’s fine too.
Looking at Wayfair’s fundamentals, the company scores the lowest possible rating in Investor’s Business Daily’s EPS rating system with a 1. That means that 99% of all companies in IBD’s database have had better earnings growth in the last three years with a greater emphasis on recent quarters.
W sees its Stochastic Oscillator ascending out of oversold territory
On October 15, 2025, the Stochastic Oscillator for W moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 65 instances where the indicator left the oversold zone. In of the 65 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where W's RSI Indicator exited the oversold zone, of 36 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where W advanced for three days, in of 290 cases, the price rose further within the following month. The odds of a continued upward trend are .
W may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 08, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on W as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for W turned negative on September 17, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
W moved below its 50-day moving average on October 21, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for W crossed bearishly below the 50-day moving average on October 15, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 20 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where W declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for W entered a downward trend on October 21, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. W’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (5.917). P/E Ratio (0.000) is within average values for comparable stocks, (44.742). W's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.778). Dividend Yield (0.000) settles around the average of (0.066) among similar stocks. P/S Ratio (0.849) is also within normal values, averaging (12.459).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. W’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
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General Information
an online home furnishing store
Industry InternetRetail
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