Track market-moving stories before they get noisy

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Bristol Myers Squibb (BMY - Free Report) New York-based Bristol Myers is one of the leading global specialty biopharmaceutical companies focused on developing treatments targeting severe diseases. Blockbuster immuno-oncology drug Opdivo maintains momentum on consistent label expansions. The company’s efforts to revive its portfolio amid generic competition for legacy drugs like Revlimid, Pomalyst, Sprycel and Abraxane are impressive.

BMY is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.8; value investors should take notice.

Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $6.32 per share. BMY boasts an average earnings surprise of +16.5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, BMY should be on investors' short list.

In the latest trading session, Bristol Myers Squibb (BMY - Free Report) closed at $56.87, marking a +2.28% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.75% for the day. At the same time, the Dow added 1.86%, and the tech-heavy Nasdaq gained 2.54%.

Prior to today's trading, shares of the biopharmaceutical company had lost 1.4% lagged the Medical sector's gain of 3.73% and was narrower than the S&P 500's loss of 1.63%.

The upcoming earnings release of Bristol Myers Squibb will be of great interest to investors. On that day, Bristol Myers Squibb is projected to report earnings of $1.61 per share, which would represent year-over-year growth of 10.27%. Simultaneously, our latest consensus estimate expects the revenue to be $11.67 billion, showing a 4.89% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.32 per share and a revenue of $47.39 billion, signifying shifts of +2.76% and -1.66%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Bristol Myers Squibb. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% upward. Right now, Bristol Myers Squibb possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Bristol Myers Squibb is currently trading at a Forward P/E ratio of 8.8. Its industry sports an average Forward P/E of 20.9, so one might conclude that Bristol Myers Squibb is trading at a discount comparatively.

Also, we should mention that BMY has a PEG ratio of 0.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.46 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 38% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Etsy (ETSY - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Etsy currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if ETSY is a promising momentum pick, let's examine some Momentum Style elements to see if this online crafts marketplace holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For ETSY, shares are up 0.61% over the past week while the Zacks Internet - Commerce industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 22.33% compares favorably with the industry's 5.58% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Etsy have increased 9.25% over the past quarter, and have gained 42.6% in the last year. In comparison, the S&P 500 has only moved 4.43% and 30.47%, respectively.

Investors should also take note of ETSY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now ETSY is averaging 3,282,847 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with ETSY.

Over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ETSY's consensus estimate, increasing from $3.43 to $3.71 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been 1 downward revision in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that ETSY is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Etsy on your short list.

Etsy announced Tuesday the launch of its native app within ChatGPT, opening up a new way for shoppers to explore its catalog of over 100 million listings.

The new experience is designed to move beyond the limitations of traditional keyword queries. Instead of typing something like “wooden coffee table,” then scrolling and adjusting filters, users can now express what they’re looking for in natural language. For instance, “Help me find a Mother’s Day gift under $100 for my mom who loves gardening.”

Now live in beta, the feature allows users to tag @Etsy directly within a prompt. From there, the Etsy app in ChatGPT surfaces relevant product listings that users can browse, compare, and click through to Etsy for additional details or purchase.

This isn’t Etsy’s first experiment inside ChatGPT. Back in September, Etsy became an early partner in ChatGPT’s Instant Checkout integration, which let users buy products directly inside the chat interface. However, the initiative ended in March, suggesting it didn’t perform as OpenAI had hoped. It was reported that Etsy didn’t see a large volume of sales from the integration, leading Etsy to start building a native app within ChatGPT instead. 

Alongside this launch, Etsy also revealed it’s testing a beta conversational search experience within its platform, specifically geared toward helping users find gifts. The gift assistant acts as a personal shopper, offering a guided, conversational way to discover ideas, narrow down preferences, and surface relevant products.

Image Credits:Etsy This builds on Etsy’s broader AI push, which includes an AI-powered discovery experience featuring curated collections and a suite of seller tools, including a tool that helps generate product titles and descriptions, as well as a writing assistant to help draft messages to buyers. In 2024, Etsy introduced a new “Designed” label to identify AI content, part of an effort to increase transparency as AI-generated artwork becomes more prevalent on the platform.

The news of a ChatGPT integration comes a week after Etsy reported its Q1 2026 earnings, surpassing revenue expectations with $631 million, and marketplace gross merchandise sales were up 6% year over year. Notably, active buyers increased for the first time in two years to 86.6 million. Etsy also touted 5.6 million active sellers on the platform. 

In February, the company announced it was selling Depop to eBay for $1.2 billion in cash, a move aimed at doubling down on its core marketplace.

Etsy joins a growing list of companies building native apps within ChatGPT, including Angi, SeatGeek, Tubi, and Wix. Developers have been able to build apps within the chatbot since October.

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Lauren covers media, streaming, apps and platforms at TechCrunch.

You can contact or verify outreach from Lauren by emailing [email protected] or via encrypted message at laurenforris22.25 on Signal.

Etsy's current foray into ChatGPT may be less about making money and more about learning how to develop its own AI tools.

Anna Gragert (she/her/hers) was previously the lifestyle editor at HelloGiggles, the deputy editor at So Yummy and the senior lifestyle editor at Hunker. Over the past 12 years, Anna has also written for the LA Times, Elle, Bust Magazine, Dazed, Apartment Therapy, Well+Good and more. At CNET, she's a senior editor on the Healthy Home team, and her coverage includes health, wellness tech, meal kits and home and kitchen tech with a focus on the technology that aims to help us live our healthiest, happiest lives.

Expertise Health and wellness tech, meal kits, home and kitchen tech, food, mental health

3 min read

Etsy is known for its marketplace of handcrafted goods, but despite that human touch, the company wants its shoppers to adopt AI. 

On Tuesday, Etsy launched a beta version of its app in the OpenAI-owned ChatGPT. Once connected to the ChatGPT Etsy app, all you have to do is tag @Etsy and provide a prompt for it to generate results that can be compared or opened on the Etsy website. 

In an Etsy News blog post, Chief Product and Technology Officer Rafe Colburn wrote that the ChatGPT app "offers shoppers a deeper view into sellers' items" and can help when nuance matters. 

"At the same time, the Etsy app in ChatGPT is poised to give us earlier insight into the moments Etsy is relevant in a shopper's journey, opening the door to understanding how and when shoppers choose to use conversational search," Colburn wrote.

In other words, while the ChatGPT Etsy app helps customers locate specific items, it also provides Etsy with information about when people choose to use both ChatGPT and Etsy while shopping. 

I took ChatGPT's Etsy app for a test runAfter connecting the Etsy app, I told @Etsy that I'm looking for a handmade birdhouse under $50. It responded with five listings showing the item name, price, seller name, rating and whether there's free shipping. There were also buttons above the listings I could click to filter by handmade, personalized, under $25 and free shipping.

I found it interesting that I could filter by "handmade," even though that was a keyword in my prompt. When I selected the filter, only one result disappeared: a PDF for a DIY birdhouse. 

What it looks like when you use the Etsy app on ChatGPT to find a handmade, under-$50 birdhouse.

ChatGPT/Screenshot by CNETHowever, I received these same filter options with different prompts -- a birthday gift for a cat-loving friend and a Mother's Day gift under $100 -- so they seem to be there by default. One exception: For the Mother's Day gift under $100, the filter for "under $25" changed to "under $50," meaning it will increase as your budget increases.

When I clicked "view details" under a listing, I was, as promised, taken to the item's page on Etsy.

Under the ChatGPT results, it noted that some birdhouses are merely decorative and not functional for birds, and that shipping can push the total cost to over $50. It also listed the two results most practical for birds, along with their prices and shipping costs. 

To narrow down my options or find sturdy, weatherproof birdhouses, ChatGPT said I could tell it more about the birds I want to attract and whether I want a birdhouse for decoration or actual nesting.  

On the other hand, the Etsy website allows me to filter by physical items, those that ship from the US, different birdhouse materials and styles, specific bird species, features such as weatherproof and squirrel-proof and more.

This isn't Etsy's first ChatGPT rodeoWhen ChatGPT launched Instant Checkout in September to allow people in the US to purchase products through ChatGPT, Etsy was the first partner. Six months later, in March, Modern Retail, a media brand covering the retail industry, reported that both OpenAI and its retail collaborators had pulled back on the feature. 

An Etsy spokesperson told Modern Retail that while the Instant Checkout integration did get potential buyers to see Etsy products and drove referral traffic, Etsy did not see "a large volume of sales."

When asked why it launched the ChatGPT app after the previous Instant Checkout integration failed to drive sales, a representative for Etsy didn't immediately respond.

Etsy's AI futureAs Etsy continues testing its ChatGPT beta app, it's using what it learns to design a similar conversational experience on Etsy. "It's still early, but we're iterating quickly and learning from real usage what's actually valuable to shoppers," Colburn wrote.

In a photo shared within the blog post, an AI chatbot called Gifting Assistant is shown helping someone find a Mother's Day gift under $150.

A sneak peek at Etsy's Gifting Assistant in beta.

EtsyWith this context, it would seem that Etsy's ChatGPT app is less about driving sales and more about the company figuring out how to design its own AI tools. 

(Disclosure: Ziff Davis, CNET's parent company, filed a lawsuit against OpenAI in 2025, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)

ANNA GRAGERT

Senior Editor, Health and Home

Anna Gragert (she/her/hers) was previously the lifestyle editor at HelloGiggles, the deputy editor at So Yummy and the senior lifestyle editor at Hunker. Over the past 12 years, Anna has also written for the LA Times, Elle, Bust Magazine, Dazed, Apartment Therapy, Well+Good and more. At CNET, she's a senior editor on the Healthy Home team, and her coverage includes health, wellness tech, meal kits and home and kitchen tech with a focus on the technology that aims to help us live our healthiest, happiest lives. See full bio

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

American consumers are rerouting their spending rather than pulling back. With University of Michigan sentiment at 48.2, the savings rate down to 3.6% from 5.1% in early 2025, and energy prices up 14.4% year-over-year, households are making rational adjustments: buying private label at Costco, hunting TJX racks for branded apparel, fixing the old Hyundai instead of financing a new one, and listing the kids’ outgrown clothes on eBay. Consumers who are highly deliberate about what they buy (the selective shopper) and those who care about sustainability (the circular economy) share the same core behaviors and are responding sensibly to a higher-cost world.

That shift is structural. Six ETFs sit closest to the money flow:

SPDR S&P Retail ETF (NYSEARCA: XRT) ProShares Online Retail ETF (NYSEARCA: ONLN) Invesco S&P SmallCap Consumer Discretionary ETF (NASDAQ: PSCD) Global X E-commerce ETF (NASDAQ: EBIZ) Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) VanEck Retail ETF (NASDAQ: RTH). They split cleanly into two camps: the resale and off-price plays (XRT, ONLN, EBIZ, PSCD) and the trade-down beneficiaries (XLP, RTH).

The Macro Setup Behind the Behavior Shift Wages are rising. Average hourly earnings reached $37.41 in April 2026, up from $36.12 a year earlier. But the consumer price index climbed from 320.8 to 333.0 over the same span, with goods inflation running 3.8% and core personal consumption expenditures at 3.2%. Real purchasing power is eroding faster than nominal pay can patch it. The behavioral response is visible in retail sales hitting a record $757.1 billion in April 2026: the spending is happening, just not where it used to.

XRT: The Cleanest Selective-Shopper Trade XRT is the rare retail fund built around equal weighting as a deliberate design choice. Off-price names like TJX, Ross, Burlington, and Ollie’s sit alongside resale platforms eBay at roughly the same portfolio weight as Amazon would carry in a cap-weighted peer. That structure gives the fund outsized exposure to exactly the names benefiting from trade-down and secondhand migration.

The catch shows up in performance: XRT is down over 8% year to date to near $17 a share, with broader specialty retail weighing on the basket even as the off-price subset gains share. Investors who want pure exposure to the selective shopper without mega-cap dilution accept that volatility. It is the best vehicle in the lineup for the resale and off-price thesis specifically, but it will not move like staples on bad sentiment days.

ONLN: The Digital Resale Channel ONLN concentrates in online retailers with meaningful weight in eBay, Etsy, and Amazon, plus international marketplace operator MercadoLibre. The thesis is that secondhand commerce is migrating to digital faster than it is leaving brick-and-mortar thrift, and the platforms taking listing fees and transaction cuts win regardless of which seller moves the sweater.

The fund is concentrated. A handful of names drive most of the return, which means a soft Amazon quarter can swing the whole portfolio. Shares are about $55 apiece, down 7.0% year to date but up 14.9% over the trailing year. The tradeoff is single-stock risk dressed up as a thematic basket.

PSCD: The Overlooked Small-Cap Angle PSCD is the contrarian pick on this list. It holds smaller specialty retailers, auto parts and repair names, and value-oriented discretionary businesses that screens dominated by Amazon and Tesla will never surface. The repair economy lives here: when motor vehicle PCE drops year-over-year, from $808.4 billion to $780.9 billion, the parts and service aftermarket gets the wallet share.

Small caps have been punished. PSCD is down 5.0% year to date and trades near $100, well below its prior highs. That is exactly why it belongs on this list. It is the long tail of the trend at a depressed entry, with operating leverage to a consumer who keeps repairing instead of replacing.

EBIZ: Global E-commerce and Marketplaces EBIZ extends the marketplace thesis internationally, with weight in MercadoLibre, Shopify, and other global platforms where resale and C2C commerce are growing faster than U.S. peers. The structural argument is that emerging-market consumers adopted secondhand commerce digitally without ever building the suburban thrift-store infrastructure that defined the U.S. resale economy.

The price has not cooperated. At over $27 a share, EBIZ is down 16.2% year to date and 10.3% over the trailing year, the worst performer in this lineup. For an investor who already owns ONLN, EBIZ is duplicative. For one who wants international marketplace exposure without buying MercadoLibre directly, it is the most efficient option available.

XLP: The Trade-Down Anchor on Staples XLP is the standout performer in this group and the clearest beneficiary on the staples side. It is up 10.1% year to date to almost $86, with Walmart at 12.1% and Costco at 9.5% of the portfolio. Those two names alone capture the bulk of the trade-down in groceries and household goods, and Target adds another 3.8%.

The fund carries an eight-basis-point expense ratio and a 2.6% dividend yield, making it one of the cheapest ways to own this exposure. The tradeoff is that XLP is also heavy in tobacco (Philip Morris, Altria) and beverages (Coca-Cola, PepsiCo), which dilute the pure discount-retail thesis. Investors who want trade-down exposure with defensive income should start here. Those who want concentrated discount retail need RTH.

RTH: Mega-Cap Winners Take the Share RTH is cap-weighted and top-heavy in Amazon, Walmart, Home Depot, Costco, and Lowe’s. That structure is a feature for this theme. When consumers tighten, the giants gain share, and the home-improvement names capture the repair-rather-than-renovate household that is fixing the existing roof instead of trading up.

At about $263, RTH is up 4.7% year to date and 10.4% over the trailing year, the second-best performer behind XLP. The tradeoff is concentration: a bad Amazon quarter moves the fund meaningfully. For investors who believe the trade-down winners are already obvious and want to own them in size, this is the most direct vehicle.

How to Choose The decision turns on which side of the consumer behavior shift you want to own. XLP and RTH are the defensive trade-down plays, already showing positive returns and built around the dominant winners. They suit investors who want the thesis with lower volatility and a clear income or mega-cap profile. XRT, ONLN, EBIZ, and PSCD are the offensive resale and off-price plays, currently in drawdown but holding the names with the most operating leverage if circular-economy adoption accelerates. XRT is the cleanest single fund for that side. PSCD is the most overlooked. Pairing one from each camp captures the full behavior shift without doubling up on Amazon and Walmart through three different tickers.

On May 20, 2026, Etsy Inc ETSY shares rose 5.7% today, bringing the current price to $60.89. The stock has experienced a 52-week range of $44.00 to $76.52, indicating some volatility over the past year.

GF Value™ verdict: Current price is $60.89, which is 1.2% undervalued compared to the GF Value™ of $61.62.GF Score™: 84/100, indicating a strong overall assessment.Notable signal: Insiders sold $18.1M worth of shares in the last three months, with no buying activity reported. Is ETSY Overvalued or Undervalued? Etsy Inc's current share price of $60.89 is slightly below the GF Value™ estimate of $61.62, reflecting a 1.2% margin of safety. This suggests that the stock is undervalued relative to its intrinsic value, providing a potential opportunity for investors. However, the GF Valuation label of "Fairly Valued" indicates that while the stock could be seen as a bargain, caution is warranted due to other factors at play, including recent insider selling. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

The marginal undervaluation of Etsy's stock could represent a buying opportunity for those who believe in the company’s growth potential. However, the recent trend of insiders selling shares may raise some concerns regarding the company's short-term outlook. Investors should weigh these elements carefully before making any decisions.

How Does ETSY's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 25.4x 34.1x Forward P/E 22.1x - Currently, Etsy's P/E (TTM) of 25.4x is significantly below its 5-year median P/E of 34.1x, indicating that the stock is trading at a lower valuation compared to its historical norms. The forward P/E of 22.1x further supports this notion of relative undervaluation. This P/E analysis aligns with the GF Value™ verdict, reinforcing the idea that Etsy may offer a favorable entry point for prospective investors.

What Does ETSY's GF Score™ Tell Us? Metric Rating GF Score™ 84 Financial Strength 5/10 Profitability 8/10 Growth 6/10 Valuation 9/10 Momentum 8/10 The GF Score™ of 84/100 indicates a strong overall assessment of Etsy's stock, with particular strengths in Profitability (8/10) and Valuation (9/10). However, the Financial Strength rating of 5/10 suggests that there may be some weaknesses in the company's balance sheet or cash flow management. Overall, the strong Valuation and Profitability scores imply that Etsy is performing well financially, while the average Financial Strength score signifies a need for caution.

What Are Insiders Doing with ETSY Stock? In recent months, insiders at Etsy have sold a total of $18.1 million in shares, with no buying activity reported. This pattern of selling could be interpreted as a sign of caution regarding the company's performance or outlook. While insider selling does not always predict future stock performance, it can indicate that those closest to the company may have reservations about its near-term prospects. Therefore, investors should consider this factor when evaluating their positions in Etsy.

What This Means for Investors Based on the GF Value™ assessment, Etsy Inc ETSY is currently fairly valued, suggesting that the stock is positioned near its intrinsic value. While there may be a slight opportunity for undervaluation based on current price versus GF Value™, the recent insider selling and average Financial Strength rank present potential risks that should be considered before making investment decisions.

For the complete analysis, visit the Etsy Inc ETSY stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ETSY's GF Score™?

The GF Score™ for Etsy is 84/100, indicating a strong overall assessment and suggesting that the stock has the potential for favorable long-term returns.

Is ETSY overvalued or undervalued?

Etsy is currently considered fairly valued, with a slight undervaluation of 1.2% compared to the GF Value™ estimate.

What is ETSY's P/E ratio?

Etsy's P/E (TTM) is 25.4x, which is significantly below its 5-year median P/E of 34.1x, indicating that the stock is currently trading at a discount relative to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Etsy, Inc. (ETSY) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript

On May 28, 2026, Etsy Inc ETSY shares rose 4.7% to $66.78. The stock has seen significant price fluctuations over the past year, with a 52-week range between $44.00 and $76.52. The recent upward trend reflects a year-to-date increase of 20.4% and a one-year gain of 29.8%.

GF Value™ verdict: Current price of $66.78 is 8.1% above the GF Value™ of $61.76, indicating the stock is overvalued.GF Score™ is 80/100 (Strong), suggesting a solid overall performance across various metrics.Notable signal: Insider activity shows that insiders sold $18.8M worth of shares in the last 3 months, indicating potential concerns about the company's future performance. Is ETSY Overvalued or Undervalued? The current price of Etsy Inc ETSY at $66.78 is significantly higher than the GF Value™, which estimates the fair value at $61.76. This results in an overvaluation of approximately 8.1%, which may pose some risks for potential investors. The GF Valuation label categorizes Etsy as fairly valued, suggesting that the stock price is not justified by its intrinsic value based on historical trading multiples, past business growth, and future performance estimates.

Given that the stock is trading above its intrinsic value, investors should be cautious. A premium valuation can lead to increased volatility if market sentiment shifts or if the company fails to meet growth expectations. The margin of safety is minimal, which means investors may want to consider the inherent risks of entering a position at this level.

How Does ETSY's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 27.8x 34.0x Forward P/E 24.1x N/A Etsy's current P/E (TTM) of 27.8x is below its 5-year median P/E of 34.0x, indicating that the stock is trading at a lower valuation compared to its historical average. The forward P/E of 24.1x suggests that analysts expect earnings to grow in the future. This P/E analysis aligns with the GF Value™ verdict, reinforcing the view that the stock is presently overvalued, considering its historical performance metrics.

What Does ETSY's GF Score™ Tell Us? Metric Rating GF Score™ 80 Financial Strength 5/10 Profitability 8/10 Growth 5/10 Valuation 7/10 Momentum 8/10 The GF Score™ of 80/100 indicates a strong overall performance, particularly in profitability and momentum, where the scores are 8/10. However, financial strength and growth lag behind at 5/10, highlighting potential vulnerabilities in the company's balance sheet and growth trajectory. The valuation rank of 7/10 suggests that while the stock may be overvalued, it still holds some merit in comparison to others in the same industry.

What Are Insiders Doing with ETSY Stock? Recent insider activity has revealed that insiders sold approximately $18.8 million worth of Etsy shares over the last three months without any reported buying activity. This trend suggests that insiders may have concerns regarding the company's future performance or valuation levels, which could be a red flag for potential investors.

The lack of insider buying further emphasizes caution, as insiders are often seen as having a better understanding of the company's prospects. Their selling could be interpreted as a signal that they believe the stock is presently overvalued or that they anticipate challenges ahead.

What This Means for Investors Based on the current analysis, Etsy Inc ETSY is considered overvalued according to GF Value™, with a price exceeding its estimated fair value by 8.1%. This overvaluation, combined with the recent insider selling and mixed indicators from the GF Score™, suggests that potential investors should exercise caution before entering or expanding positions in the stock.

For the complete analysis, visit the Etsy Inc ETSY stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ETSY's GF Score™?

ETSY's GF Score™ is 80/100, indicating a strong overall performance across multiple metrics, suggesting the company has solid potential for long-term returns.

Is ETSY overvalued or undervalued?

ETSY is currently overvalued, with a GF Value™ of $61.76 compared to the current price of $66.78, reflecting an 8.1% overvaluation.

What is ETSY's P/E ratio?

ETSY's P/E ratio (TTM) is 27.8x, which is below its 5-year median of 34.0x, indicating that the stock is trading at a lower valuation compared to its historical average.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

A month has gone by since the last earnings report for Etsy (ETSY - Free Report) . Shares have added about 3.8% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Etsy due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Etsy, Inc. before we dive into how investors and analysts have reacted as of late.

ETSY Q1 Earnings & Revenues Surpass Estimates, Both Increase Y/YEtsy reported first-quarter 2026 earnings of 89 cents per share from continuing operations, surpassing the Zacks Consensus Estimate of 62 cents by 43.55%. This compares favorably with a loss of 33 cents per share in the year-ago quarter.

First-quarter 2026 revenues rose 3.1% year over year to $631.3 million. The figure surpassed the Zacks Consensus Estimate of $616 million by 2.4%. Revenue growth was primarily driven by strength in advertising and services.

Year-over-year continuing operations comparisons include Reverb in the first quarter of 2025 but reflect the Etsy marketplace only in the first quarter of 2026, following Reverb's divestiture in June 2025.

ETSY's Q1 Top-Line DetailsMarketplace revenues were $432.8 million (68.5% of total revenues), up 1.1% year over year on a continuing operations basis. On an Etsy marketplace standalone basis, marketplace revenues grew 6.3% year over year.

Services revenues were $198.5 million (31.5% of total revenues), up 7.9% year over year on a continuing operations basis. On an Etsy marketplace standalone basis, services revenues rose 10.5% year over year, led by Etsy Ads and Offsite Ads, with Etsy Payments also contributing. The stronger expansion in services reflects Etsy's ongoing shift toward monetizing seller services, particularly advertising, which continues to enhance take rate and overall revenue mix. Etsy Payments also contributed to services growth.

ETSY's Active User Base & GMSEtsy's trailing 12-month active buyer base was 86.6 million, down 2.1% year over year but up 0.1% sequentially, marking the first quarter of sequential growth in two years. New buyers totaled 5 million, up 2.3% year over year and reactivated buyers reached 6.9 million, up 6.6% year over year. Combined gross buyer additions were 11.9 million, up 4.8% year over year.

The active seller base was 5.6 million, up 3.3% year over year, representing the first period of year-over-year growth since the introduction of the seller setup fee.

Etsy marketplace GMS was $2.5 billion, up 5.5% year over year and representing a 540-basis-point improvement over the fourth-quarter 2025 growth rate. On a currency-neutral basis, the Etsy marketplace GMS grew 3.6% year over year.

Mobile app GMS grew 11.2% year over year, accelerating from 6.6% last quarter, with app share reaching approximately 47% of total GMS, expanding 240 basis points (bps) year over year. Non-app GMS also improved, growing 1% year over year versus a decline of 4.8% last quarter. GMS per active buyer reached $122 on a trailing 12-month basis, up 1.5% year over year for the first time since 2022 and marking a fourth consecutive quarter of sequential improvement.

The Etsy marketplace take rate for the first quarter reached 25.7%, expanding 180 bps year over year. Take rate expansion was led by Etsy Ads on the back of machine learning improvements to ad relevance and seller budget pacing. Offsite Ads and Etsy Payments also contributed to the take rate expansion.

ETSY’s Operating ResultsIn the first quarter of 2026, total operating expenses were $335.8 million on a continuing operations basis, down 25.1% year over year. The prior-year period included a $101.7 million asset impairment charge; absent that, total operating expenses declined modestly year over year on a like-for-like basis.

Marketing expenses were $174.2 million. As a percentage of revenues, marketing expenses declined 40 bps year over year to 27.6% on a continuing operations basis, reflecting targeted portfolio mix shifts toward paid search and owned channels and the full in-sourcing of paid social efforts.

Product development expenses were $99.1 million. As a percentage of revenues, product development expenses declined 60 bps year over year to 15.7%, as modestly higher employee costs were offset by savings in other areas.

General and administrative (G&A) expenses were $62.5 million. As a percentage of revenues, G&A expenses contracted 190 bps year over year to 9.9%, benefiting from a one-time reversal of non-income tax expense and stable employee costs on a larger revenue base.

Adjusted EBITDA grew 6.4% year over year to $184.7 million on a continuing operations basis. The adjusted EBITDA margin expanded 100 bps year over year to 29.3%. Operating income was $119.8 million, compared to an operating loss of $3.9 million in the year-ago quarter, with the prior period weighed by the asset impairment charge.

ETSY's Balance SheetAs of March 31, 2026, cash and cash equivalents totaled $1.21 billion, down sequentially from $1.36 billion as of Dec. 31, 2025. Total liquidity, including short and long-term investments, was approximately $1.58 billion, a sequential decline from approximately $1.71 billion at year-end 2025.

Long-term debt stood at $2.33 billion as of March 31, 2026, up marginally from $2.33 billion as of Dec. 31, 2025, with short-term debt also stable at $649.3 million, unchanged sequentially. Net cash provided by continuing operations was $102.5 million in the quarter, representing free cash flow conversion of approximately 50% of adjusted EBITDA, compared to approximately 29% in the year-ago quarter.

Under its share repurchase program, Etsy repurchased approximately $145 million or 2.7 million shares of common stock in the first quarter of 2026. As of March 31, 2026, $827.9 million remained on the current board-authorized repurchase programs.

ETSY's Q2 & 2026 GuidanceWith Depop classified as a discontinued operation beginning in the first quarter of 2026, all guidance pertains to the Etsy marketplace only. The pending sale of Depop to eBay for $1.2 billion is expected to close by the end of the third quarter of 2026.

For the second quarter of 2026, Etsy anticipates the take rate to be approximately 25.7%. Marketplace GMS is projected to be between $2.48 billion and $2.53 billion, representing 3% to 5% year-over-year growth. The adjusted EBITDA margin is expected to be in the range of 27% to 29%.

For 2026, management now expects the Etsy marketplace GMS to grow in the low single-digit range, an improvement from prior guidance, with year-over-year growth expected in each quarter. The full-year adjusted EBITDA margin outlook of 28% to 30% is unchanged from prior guidance.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 15.99% due to these changes.

VGM ScoresCurrently, Etsy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Etsy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Online resale app Vinted is seeing a structural shift in consumer behaviour, as habits form around the resale economy, the company's marketplace boss told CNBC on Monday.

Vinted, the consumer-to-consumer platform allowing customers to sell unwanted items like clothing, electronics, or even furniture, has seen rapid growth in recent years, boosted by consumers increasingly looking for value amid rising costs of living globally.

The value of items sold on Vinted grew nearly 50% last year, as it launched in more European markets.

"It's a fundamental change in consumption towards second hand, and I think that is very much here to stay," Adam Jay, CEO of Vinted Marketplace, told CNBC. "Vinted was growing well before the current economic difficulties, the cost of living crisis, inflation, and has continued to grow well in times of difficulty and stress."

His comments come as Vinted in late April completed a secondary shares transaction of 880 million euros ($1.02 billion), valuing the Lithuanian startup at over $9 billion.

Vinted's rapid growth and multi-billion dollar valuation have fueled intense speculation regarding a potential blockbuster IPO. 

The company's robust financial health also signals that it is under little pressure to list soon, as it is cash-positive and capable of raising nearly a billion euros in private capital.

Executives have hinted at an upcoming IPO but haven't given a timeline. Jay said he was happy with the current investors, but declined to comment on the timing and location of a potential IPO.

The secondary transaction led by EQT brought on new investors such as Schroders Capital and BlackRock, and saw existing shareholders like Baillie Gifford increase their position.

It introduced "institutional, long-term investors that can hold across private and public markets, while providing liquidity to existing shareholders and employees," Vinted said at the time. The company didn't raise any new primary capital in this transaction.  

Expanding beyond fashion and EuropeOnline secondhand apparel is growing rapidly, and at twice the speed of the overall market, according to market research firm GlobalData.

The explosive growth is partially because the secondhand market represents a win-win for buyers and sellers, according to Jay. "You've got this habit being formed, you've got this big social impact, climate impact, and that… combines to be the Vinted equation." 

Vinted coined the term "Vinted math," referring to consumers who view second hand as an easy and more affordable option, and consider the resale value when buying new items.

Vinted users saved 21.6 billion euros on fashion in 2025, compared to retail prices, paying on average 72% less than the original price, according to the company's 2025 Impact Report. 

Vinted is now trying to take that formula across the Atlantic as well as to new categories.

"It took us a long time before we decided to go beyond fashion, and we really needed to be confident that our fashion marketplace was working right across Europe," said Jay. 

"We were nervous because a lot of what our members tell us they love about Vinted is that it's simple, it's easy to use, it's really clear how it works, and we were worried that we'd lose that as we started layering in other categories." 

Ultimately, it had enough signals to take the leap, such as feedback from users having been creative in selling non-fashion items even before Vinted officially expanded its categories beyond apparel.

Vinted is currently present in 26 countries, with France and the UK being the biggest markets. The company has had a presence in the U.S. since 2013, but it only earlier this year started being more active in marketing its product and trying to grow that market. 

There's an "enormous opportunity" in the U.S., but success could take "weeks, months, and maybe years," Jay said.

It has historically been challenging for European tech and consumer companies to successfully bring their business models to the U.S. 

One of the biggest challenges in taking on the U.S. market is high shipping costs, Jay said. 

Vinted is also building out its shipping and payments infrastructure via Vinted Go and Vinted Pay. Its expansion into logistics, wallet infrastructure, and new markets is having an impact on the company's bottom line. 

Net profit declined by 19% in 2025 compared to the previous year. Even as revenue rose 38% to 1.1 billion euros. Its gross merchandise value (GMV) spiked 47% to 10.8 billion euros.

The platform also still has some way to go before it can compete with the likes of, for example eBay, which reported GMV of $79.6 billion in 2025. EBay also recently said it plans to buy fashion marketplace Depop from Etsy for about $1.2 billion to strengthen its fashion offering and attract a younger demographic.

"We're here for the long term," Jay said in response to a question of whether rapid expansion is the best use of capital for a company eyeing public markets. "We're trying to make the investments, all of it is the unsexy stuff, make the unsexy investments that make secondhand first choice worldwide."

Wayfair narrowed its loss in the first quarter, but said the year has been tough on the furniture industry so far.

For the quarter ended March 2026, Wayfair (W - Free Report) reported revenue of $2.93 billion, up 7.4% over the same period last year. EPS came in at $0.26, compared to $0.10 in the year-ago quarter.

The reported revenue represents a surprise of +1.72% over the Zacks Consensus Estimate of $2.88 billion. With the consensus EPS estimate being $0.26, the EPS surprise was +1.96%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Wayfair performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Orders Delivered: 9.4 million versus 9.44 million estimated by five analysts on average.Average Order Value: $312.00 compared to the $304.53 average estimate based on five analysts.Active Customers: 21.4 million compared to the 21.14 million average estimate based on four analysts.LTM Net Revenue per Active Customer: $591.00 versus $598.25 estimated by three analysts on average.LTM Orders Per Customers: $1.88 versus the three-analyst average estimate of $1.89.Geographic Net Revenue- International: $319 million versus $319.59 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6% change.Geographic Net Revenue- United States: $2.61 billion versus $2.56 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.5% change.View all Key Company Metrics for Wayfair here>>>

Shares of Wayfair have returned -2.6% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Wayfair W is experiencing pressure following its Q1 earnings report. The online home furnishings retailer fell short of EPS expectations, breaking a four-quarter streak of double-digit growth. However, revenue rose by 7.4% year-over-year to $2.93 billion, surpassing forecasts. Wayfair anticipates mid-single-digit revenue growth for Q2, aligning with recent trends.

The home furnishings sector started the year unevenly, with consumer spending decreasing due to high energy and fuel costs. Wayfair estimates that the category declined in the low-single-digit range, suggesting it outperformed by a high-single-digit margin. U.S. revenue grew 7.5% year-over-year to $2.6 billion, while international revenue rose 6.0% to $319 million. Q1 results benefited from a 3.3% increase in orders, totaling 9.4 million, and a 4% rise in average order value (AOV) to $312. New order growth reached nearly 7%, the best performance since 2021, while active customer growth saw a 1.4% year-over-year increase to 21.4 million. Gross margin decreased to 30.1% from 30.7% last year, but contribution margin improved to 15.0%, up 70 basis points year-over-year. The adjusted EBITDA margin of 5.2% marked the strongest Q1 in five years, reflecting robust revenue growth and effective cost management. For Q2, Wayfair expects gross margin to range between 29.5% and 30.5%, indicating limited short-term expansion as the company invests in rewards, pricing, and customer experience to drive future order growth and adjusted EBITDA. While Wayfair still anticipates mid-single-digit revenue growth in Q2, it adopted a cautious tone, noting volatility in the category during April, which is trending down in the mid-single digits. Despite the challenges, Wayfair continues to show growth potential in a sluggish market, supported by order growth and improved customer engagement. Nevertheless, concerns about the EPS miss, cautious category outlook, and limited gross margin expansion are weighing on investor sentiment. The company’s platform remains resilient, with a diverse selection, strong supplier network, logistics capabilities, AI initiatives, and a rewarding customer program contributing to its market share gains. Active customer growth and new order performance are encouraging signs, yet the sluggish home category and ongoing investments from gross margin leave investors cautious until the operating environment and margin trends stabilize.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

By PYMNTS  |  April 30, 2026

 | 

Artificial intelligence (AI) and influencers helped Wayfair outperform the home furnishings category during the first quarter, Niraj Shah, the company’s CEO, co-founder and co-chairman said during a Thursday (April 30) earnings call.

The home furnishings category was buffeted by weather disruptions early in the first quarter and a pullback in consumer spending due to rising energy and fuel prices later in the quarter, Shah said.

Those pressures led to the category being down in the low-single-digit range for the quarter, but Wayfair outperformed the market by a high-single-digit spread, he said.

According to a Thursday earnings release, Wayfair’s revenue was up 7.4% year over year, reaching $2.9 billion in the first quarter.

“We take confidence in knowing that whichever direction the macro turns, Wayfair will be a key share winner because our scale gives us the ability to build a customer experience that cannot be matched,” Shah said during the call.

Wayfair’s scale advantage in technology includes the ability to develop solutions that can be used in all the company’s geographic markets and continuously improve the customer experience.

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“Nowhere is this more evident than in our rapid deployment of generative and agentic AI,” Shah said. “We’re not just experimenting with AI; we’re actively using it to widen our competitive moat.”

For example, Wayfair is using AI to translate its catalog into French for its customers in Quebec, and to autonomously enrich and correct product attribute details across its catalogs for customers in the United States and the United Kingdom.

“This kind of technological leverage allows us to use resources more efficiently while simultaneously delivering a richer and more intuitive shopping experience,” Shah said.

When it comes to marketing, Wayfair is now applying the marketing mix it uses in the U.S. to Canada and the U.K. That mix includes a greater share of marketing on platforms such as TikTok, connected TV and streaming audio rather than traditional channels.

In Canada, the company scaled its creator program from zero to more than 1,000 creators over the past year and gained tens of millions of views. This approach helps Wayfair adapt to local market trends.

“We can speak to and resonate directly with the consumer looking for inspiration for her home in the suburbs of London or the heart of Toronto,” Shah said.

The company also expanded its Wayfair Rewards loyalty program to Canada and the U.K. within the past few weeks and is already seeing rewards shoppers return more frequently.

“In the home category, a customer may only make a purchase a few times a year,” Shah said. “Our aim is to ensure that every time they think about their home, they think of Wayfair.”

Wayfair continues to deliver strong net revenue growth at +7.4% in Q1 2026. It has been outperforming the category by close to 10%. Wayfair's gross margins may end up slightly lower as it battles against a weaker macro environment.

On May 12, 2026, Wayfair Inc W shares fell 7.4% to $61.38, continuing a downward trend that has seen the stock decline 14.4% over the past month and a staggering 38.9% year-to-date. The stock has experienced significant volatility, with a 52-week high of $119.98 and a low of $32.68.

GF Value™ verdict: Current price $61.38 vs GF Value™ $53.21, indicating the stock is 15.4% overvalued.GF Score™ of 67/100, suggesting above-average potential compared to other stocks.Notable signal: Insiders sold $55.7M in the last 3 months with no buying activity. Is W Overvalued or Undervalued? The current price of Wayfair Inc W at $61.38 is above the GF Value™ estimate of $53.21, indicating that the stock is 15.4% overvalued. This overvaluation suggests that investors may face a risk of declining prices if the market corrects. The GF Valuation label describes the stock as "Modestly Overvalued," which highlights the potential for additional downside risk if market conditions do not improve or if company performance falters. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

While the stock may see some upside potential if the company can improve its financial performance, the current valuation does not provide a strong margin of safety for new investors. A prudent approach would be to monitor the company's performance closely and consider the implications of its current valuation before making any investment decisions.

How Does W's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 22.5x 91.0x (5-Year Median) Wayfair's current forward P/E of 22.5x indicates a significant discount compared to its 5-year median P/E of 91.0x. This analysis suggests that the stock is trading below its historical valuation levels, which may support the argument for its potential undervaluation, contrasting with the GF Value™ verdict that indicates it is overvalued. Thus, the P/E analysis presents a somewhat mixed message regarding the stock's valuation.

What Does W's GF Score™ Tell Us? Metric Rating GF Score™ 67 Financial Strength 5/10 Profitability 2/10 Growth 4/10 Valuation 6/10 Momentum 8/10 The GF Score™ of 67/100 indicates that Wayfair Inc possesses above-average potential in the market. The strongest area is its Momentum rank of 8/10, suggesting that the stock has been performing well in the short term. However, the weakest aspect is Profitability, rated at 2/10, which raises concerns about the company's ability to generate consistent earnings. Overall, while the stock shows some positive momentum, its underlying financial performance remains a critical area of concern.

What Are Insiders Doing with W Stock? In recent months, insider activity at Wayfair has been notably bearish, with insiders selling a total of $55.7 million worth of shares and no buying activity reported. This pattern of selling may suggest that those closest to the company lack confidence in its near-term prospects, which can be a red flag for potential investors. Insiders typically have a keen sense of the company's operational health, and their selling could indicate a response to concerns about future performance or strategic shifts within the company.

What This Means for Investors Based on the GF Value™ assessment, Wayfair Inc W is currently overvalued. The stock's significant premium over its intrinsic value, coupled with concerning insider activity and mixed signals from its historical valuation analysis, suggests a cautious approach is warranted. Potential investors should carefully weigh these factors against their investment strategy and risk tolerance.

For the complete analysis, visit the Wayfair Inc W stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is W's GF Score™?

The GF Score™ for Wayfair Inc is 67/100, indicating above-average potential compared to other stocks in the market.

Is W overvalued or undervalued?

Wayfair Inc is currently overvalued, with its shares trading at a 15.4% premium over the GF Value™ estimate.

What is W's P/E ratio?

The forward P/E ratio for Wayfair Inc is 22.5x, which is significantly below its historical 5-year median P/E of 91.0x, suggesting a potential discount in its current valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

, /PRNewswire/ -- Wayfair Inc. (NYSE: W) (the "Company," "we" or "Wayfair") today announced the pricing by its subsidiary, Wayfair LLC (the "Issuer"), of its private offering of $400 million in aggregate principal amount of 7.125% senior secured notes due 2034 (the "Notes"). The Notes will mature on May 31, 2034, unless earlier repurchased or redeemed in accordance with their terms. The Notes offering is expected to close on May 18, 2026, subject to customary closing conditions.

We intend to use the net proceeds from the Notes offering to repay a portion of our existing indebtedness and for other general corporate purposes. No assurance can be given as to how much, if any, of our existing indebtedness will be repaid with the net proceeds from this offering, the terms on which it will be repaid (if repaid or repurchased before maturity) or the timing of any such repayment.

The Notes will be fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by Wayfair and certain Wayfair domestic subsidiaries that guarantee the Issuer's senior secured revolving credit facility and existing senior secured notes. The Notes and related guarantees will be secured on a first-priority basis by liens on the same assets that secure the Issuer's senior secured revolving credit facility and existing senior secured notes.

The Notes and related guarantees have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. The Notes are being offered only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons in accordance with Regulation S under the Securities Act.

This press release is for informational purposes only and shall not constitute an offer to sell or a solicitation of an offer to buy any securities. Any offer of the Notes and related guarantees is not being made to any person in any jurisdiction in which the offer, solicitation or sale is unlawful.

About Wayfair
Wayfair is the destination for all things home, and we make it easy to create a home that is just right for you. Whether you're looking for that perfect piece or redesigning your entire space, Wayfair offers quality finds for every style and budget, and a seamless experience from inspiration to installation.

The Wayfair family of brands includes:

Wayfair: Every style. Every home. AllModern: Modern made simple. Birch Lane: Classic style for joyful living. Joss & Main: The ultimate style edit for home. Perigold: The destination for luxury home. Wayfair Professional: A one-stop Pro shop. Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal and state securities laws. All statements other than statements of historical fact contained in this press release are forward-looking statements, including statements regarding the terms of the Notes; the anticipated use of the net proceeds from the offering of the Notes; and the expected closing of the Notes offering. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "continues," "could," "intends," "goals," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or the negative of these terms or other similar expressions.

Forward-looking statements are based on current expectations of future events. We cannot guarantee that any forward-looking statement will be accurate, although we believe that we have been reasonable in our expectations and assumptions. Investors should realize that if underlying assumptions prove inaccurate or that known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. Investors are therefore cautioned not to place undue reliance on any forward-looking statements. We believe that these risks and uncertainties include, but are not limited to, adverse macroeconomic conditions, including economic instability, changes in laws and regulations and other governmental actions or policies, including those related to taxes and new or increased tariffs, and the uncertainty surrounding potential changes in such laws and regulations or other potential governmental actions or policies; export controls, sustained higher interest rates and inflation, slower growth or the potential for recession, disruptions in the global supply chain and other conditions affecting the retail environment for products we sell, geopolitical disturbances and conflicts, or threats of such actions and related uncertainty, which could exacerbate other risks such as shipment disruptions or fuel shortages, and other matters that influence consumer spending and preferences, as well as our ability to plan for and respond to the impact of these conditions; risks relating to our liability and dilution management exercises; our ability to manage the impacts of our restructurings and workforce reductions; our ability to acquire and retain customers in a cost-effective manner; our ability to increase our net revenue per active customer; our ability to curate, market, grow and maintain strong brands; and our ability to expand our business and compete successfully, including risks relating to achieving the anticipated benefits of investments in our technology and systems, including generative artificial intelligence. A further list and description of risks, uncertainties and other factors that could cause or contribute to differences in our future results include the cautionary statements herein and in our most recent Annual Report on Form 10-K and in our other filings and reports with the Securities and Exchange Commission. We qualify all of our forward-looking statements by these cautionary statements.

These forward-looking statements speak only as of the date of this press release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events or otherwise.

Media Relations Contact:
Tara Lambropoulos
[email protected]

Investor Relations Contact:
Ryan Barney
[email protected]

SOURCE Wayfair Inc.

Wayfair Continues Nationwide Retail Expansion With New Cincinnati Store PR Newswire

BOSTON, May 15, 2026

, /PRNewswire/ -- Wayfair Inc. (NYSE: W), the destination for all things home, today announced plans to open a new large-format retail store in Cincinnati, Ohio, further accelerating its expansion into high-impact markets across the U.S. The location is expected to open in 2027.

"Cincinnati is an exciting market for us, not only for its strong retail environment but also for its reach across the broader tri-state region," said Liza Lefkowski, vice president of merchandising and stores at Wayfair. "We're looking forward to serving customers across Ohio, Kentucky and Indiana and helping them create homes they love."

The store will be located at 4825 Marburg Avenue within the Center of Cincinnati, a major retail destination at the intersection of Interstate 71 and Route 562. The approximately 130,000-square-foot, single-level space sits in a high-traffic corridor connecting key retail hubs, making it an ideal location for customers to shop Wayfair in person.

The Cincinnati store will feature Wayfair's wide assortment across furniture, décor, housewares, appliances and more, alongside curated Wayfair Verified products and dedicated free design services to support projects of any size. Many items will be available for immediate take-home, while larger pieces such as sofas, dining sets and outdoor furniture can be delivered quickly through Wayfair's best-in-class logistics network.

The Cincinnati location will be Wayfair's second store in Ohio and builds on the company's growing fleet of stores, including locations in Wilmette, IL and Atlanta, GA, as well as the announced markets of Denver, CO; Fort Lauderdale, FL; Columbus, OH; and Westchester, NY. It reinforces the company's commitment to expanding its omnichannel experience and meeting customers wherever they choose to shop for home.

About Wayfair
Wayfair is the destination for all things home, and we make it easy to create a home that is just right for you. Whether you're looking for that perfect piece or redesigning your entire space, Wayfair offers quality finds for every style and budget, and a seamless experience from inspiration to installation.

Wayfair Media Relations:
Karoline Etter
[email protected]

Wayfair Investor Relations:
Ryan Barney
[email protected]

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SOURCE Wayfair Inc.

Wayfair Inc (NYSE:W) appears to be on pace for mid-single-digit revenue growth in the second quarter, according to Jefferies, though the firm maintained a cautious outlook for the second half of the year based on weakening forward demand indicators.

Jefferies reiterated its ‘Hold’ rating on the online home furnishings retailer, citing website traffic data through May that suggests the company is tracking toward approximately 5% year-over-year growth for the current quarter. The brokerage noted that management had previously guided for mid-single-digit growth in Q2.

Jefferies wrote that web traffic across Wayfair's brands and geographic markets showed a modest sequential improvement from April into May on both one-year and two-year stacked comparisons.

Luxury-focused banner Perigold continued to outperform, posting more than 70% growth in visits, while the core Wayfair.com platform also improved. Traffic trends across specialty brands, including Birch Lane, AllModern, and Joss & Main, were described as mixed.

Despite the stronger traffic trends, the firm expressed caution about the sustainability of growth in the back half of 2026. Jefferies pointed to survey data on consumer purchase intentions, which showed buying propensity declined year over year in May, marking the third consecutive month of annual declines.

The analysts wrote that these leading indicators support their view that revenue growth could remain around the mid-single-digit range rather than accelerate above that level as Wayfair enters what it described as its most challenging year-over-year comparisons.

Jefferies also noted that a growing share of Wayfair's traffic appears to be driven by paid advertising. According to its analysis, traffic from paid sources increased 37% year over year in May, up from 29% growth in April. As a result, the firm believes the lower end of the company's advertising spending guidance for the second quarter may be difficult to achieve and reiterated its forecast for ad spending to represent 11.1% of revenue.

Looking ahead, Jefferies said Wayfair may face a tougher operating environment as the benefits from earlier industry pricing dynamics begin to fade. The brokerage noted that many of Wayfair's suppliers had initially been reluctant to raise prices, helping the company maintain sales momentum relative to traditional home furnishings retailers. However, it wrote that this advantage could become harder to sustain over time.

The firm also highlighted rising fuel costs as a potential headwind for demand, particularly for lower-priced discretionary home goods.

As part of its analysis, Jefferies said it found a positive correlation between changes in consumer buying propensity and Wayfair's subsequent quarterly revenue growth, reinforcing its view that current survey trends point to limited upside for sales growth in the second half of the year.

Shares of Wayfair traded down about 5% at $69 on Wednesday afternoon, down more than 31% so far this year.

Albemarle's share price declined by about 20% recently, making this a good initial entry point. Part of the decline can arguably be attributed to the shutdown of its Australia plant, which resulted in a sizable loss. Long-term fundamentals for lithium look good on the positive correlation between oil & lithium prices.

Key Takeaways Albemarle and Rio Tinto are well-positioned to benefit from rising lithium demand and prices.ALB focuses on capacity expansion, cost cuts and strong cash flow to support growth.RIO advances major lithium projects, boosts output and leverages a strong balance sheet. Albemarle Corporation (ALB - Free Report) and Rio Tinto Group (RIO - Free Report) are prominent players in the lithium space. Both companies are well-positioned to gain from higher lithium prices, fueled by robust demand from electric vehicles (EVs) and energy storage systems, as well as supply disruptions linked in part to production cuts in China. Lithium prices have rebounded from last year’s lows amid tightening supply conditions and healthy demand in China and across global markets.

Let’s dive deep and closely compare the fundamentals of these two lithium producers to determine which one is a better investment option now amid improving lithium market conditions.

The Case for ALBAlbemarle is well-placed to gain from long-term growth in the battery-grade lithium market. The market for lithium batteries and energy storage remains strong, especially for EVs, offering significant opportunities for the company to develop innovative products and expand capacity. Lithium demand is expected to grow on the back of significant global EV penetration. ALB expects lithium demand to witness a compound annual growth rate (CAGR) of 10-20% from 2025 to 2030. Stationary storage is expected to be a significant driver for lithium demand along with EVs. Albemarle expects demand to grow roughly 15-40% this year. Demand indicators stayed positive in the first quarter of 2026, with global Energy Storage Systems production rising 117% year over year.

The company is strategically executing its projects aimed at boosting its global lithium conversion capacity. It remains focused on investing in high-return projects to drive productivity. Healthy customer demand, capacity expansion and plant productivity improvements are supporting its volumes. ALB saw higher sales volumes (up 14% year over year) in its Energy Storage unit in the first quarter on the strength of its integrated conversion facilities. The Salar yield improvement project in Chile has achieved a 50% operating rate, and the ramp-up continues to deliver encouraging outcomes.

ALB has started the environmental permitting process for a commercial direct lithium extraction project at Salar de Atacama. The ramp-up at the Meishan lithium conversion facility in China is also progressing ahead of schedule. The CGP3 expansion at the Greenbushes spodumene mine in Australia has been expedited, expected to reach full production later this year, and add to capacity.

Albemarle is taking aggressive cost-saving and productivity actions as well. The company delivered roughly $450 million in cost and productivity improvements for full-year 2025, having surpassed its initial target of $300-$400 million. It expects additional cost and productivity improvements of $100-$150 million in 2026, with $40 million already delivered this year. ALB is taking actions to maintain its competitive position, including the initiation of a comprehensive review of cost and operating structure, optimization of the conversion network and reduction of capital expenditure. Its capital expenditures of $590 million for 2025 decreased 65% year over year.

  Albemarle remains committed to driving shareholder value by leveraging healthy cash flows and strong liquidity. Its operating cash flow was around $1.3 billion in 2025, up roughly 86% from the prior-year period. At the end of the first quarter, ALB had liquidity of around $2.7 billion, including cash and cash equivalents of around $1.1 billion. ALB generated an operating cash flow of $346 million and free cash flow of $248 million in the quarter.

The company paid down $1.3 billion of outstanding debt in March 2026, reducing annual interest expense by roughly $60 million. This followed the successful divestments of the controlling stake in Ketjen and its 50% interest in the Eurecat joint venture, which together generated $670 million in pre-tax proceeds.

The company remains focused on maintaining its dividend payout. It has raised its quarterly dividend for the 30th straight year. ALB offers a dividend yield of 0.9% at the current stock price.

The Case for RIORio Tinto holds one of the world’s largest lithium portfolios and a robust pipeline of development projects, positioning it well to benefit from the growing demand for lithium.  RIO produces lithium using several established methods, including direct lithium extraction (“DLE”) from brines, traditional pond-based brine extraction and hard-rock mining. The company also manufactures a broad suite of lithium products, including lithium chloride, lithium carbonate, lithium hydroxide, and spodumene concentrate.

RIO is expanding its lithium extraction capabilities through a new partnership with ILiAD Technologies, a leader in DLE technology. The collaboration supports the company’s efforts to enhance operational efficiency while improving sustainability and cost effectiveness. ILiAD’s technology allows the extraction of high-purity lithium chloride from a wide range of lithium-rich brine resources and complements RIO’s existing DLE operations at Fénix and Rincon.

RIO is making progress with its high-value lithium projects. The fully owned Rincon Lithium Project in Argentina remains on track with commissioning of the starter plant already being completed and ramp-up currently in progress, with full capacity expected by the end of 2026. RIO is investing $2.5 billion to expand Rincon, which has a capacity of 60,000 tons of battery-grade lithium carbonate annually with a 40-year mine life. First production from the project is expected in 2028, followed by a three-year ramp-up to full capacity. Rio Tinto has secured a $1.175 billion financing package from international lenders to support the development of the Rincon project.

The Fénix expansion project and Sal de Vida in Argentina, with a capital cost of $0.7 billion each, are mechanically complete with first production expected in second-half 2026. The Nemaska Lithium project, in which Rio Tinto now holds a 53.9% stake with the Government of Québec retaining the balance, is a fully integrated spodumene-to-lithium hydroxide development project comprising the lithium hydroxide plant in Bécancour and the Whabouchi spodumene mine with a production capacity of 32,000 tons. RIO initially acquired a 50% interest in Nemaska Lithium through the buyout of Arcadium in March 2025.

At Bécancour, engineering has been completed with construction at more than 70%. RIO has decided to slow the pace of construction of the project during 2026, but remains fully committed to advancing the project. It expects construction to ramp up following optimization works and does not envision major changes to the project’s overall timeline. Commissioning of the Bécancour plant was planned to start this year, with first production in 2028.

RIO has a robust balance sheet and generates strong cash flows, which allow it to make investments in projects while driving shareholder returns. The company ended 2025 with cash and cash equivalents and other short-term highly liquid investments of $9.2 billion. RIO generated an operating cash flow of $16.8 billion in 2025, up 8% year over year. Rio Tinto has a policy of returning 40-60% of its underlying earnings, with a 10-year track record of dividend payout at the top end of the range. It offers a dividend yield of 4.8% at the current stock price.

ALB & RIO: Price Performance, Valuation & Other ComparisonsThe ALB stock has surged 200.9% over the past year, while RIO has rallied 78.4%.

Image Source: Zacks Investment Research

ALB is currently trading at a forward price-to-sales ratio of 3.32. RIO is currently trading at a forward price-to-sales ratio of 2.18, below ALB.

Image Source: Zacks Investment Research

ALB’s long-term debt-to-capitalization is around 15.2%, lower than RIO’s 24.6%.  

Image Source: Zacks Investment Research

How the Zacks Consensus Estimate Compares for ALB & RIOThe Zacks Consensus Estimate for ALB’s 2026 sales implies year-over-year growth of 16.7%. The same for EPS suggests a 1,675.9% year-over-year rise. The EPS estimates for 2026 have been trending higher over the past 60 days.

Image Source: Zacks Investment Research

The consensus estimate for RIO’s 2026 sales and EPS implies a year-over-year rise of 13% and 28%, respectively. The EPS estimates for 2026 have been trending northward over the past 60 days.

Image Source: Zacks Investment Research

ALB or RIO: Which Stock Holds the Edge?ALB and RIO stand to benefit from rising lithium prices driven by EV and energy storage demand. Albemarle is benefiting from higher lithium volumes on project ramp-ups and actions to boost global lithium conversion capacity and productivity. RIO is advancing major lithium projects to boost output and leveraging a strong balance sheet. ALB's higher earnings growth projections suggest that it may offer better investment prospects in the current market environment. ALB’s lower leverage also suggests lower financial risks. Investors seeking exposure to the lithium space might consider Albemarle as the more favorable option at this time.

ALB currently carries a Zacks Rank #1 (Strong Buy), while RIO has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways ALB generated $248M in Q1 free cash flow and ended the quarter with $2.7B liquidity.Albemarle's 2026 free cash flow is expected to be supported by higher lithium prices and productivity.ALB targets 2026 operating cash flow conversion within its 60-70% long-term range at $20 per kg lithium price. Albemarle Corporation (ALB - Free Report) remains committed to driving shareholder value by leveraging solid liquidity and healthy cash flows. At the end of the first quarter of 2026, ALB had liquidity of around $2.7 billion, including cash and cash equivalents of around $1.1 billion. It generated an operating cash flow of $346 million and free cash flow of $248 million in the quarter.

ALB generated free cash flow of $692 million for full-year 2025, driven by strong cash conversion, lower capital spending and productivity measures. Free cash flow in 2026 is expected to be supported by the recent uptick in lithium prices, strong cash conversion and productivity. Its ability to convert improving operating performance into free cash is likely to result in incremental returns to shareholders. ALB expected full-year 2026 operating cash flow conversion to be within its long-term target range of 60-70% at the average lithium market price of $20 per kilogram.

The company remains focused on maintaining its dividend payout. It has raised its quarterly dividend for the 30th straight year. ALB offers a dividend yield of 0.9% at the current stock price. Backed by healthy cash flows and sound financial health, the company's dividend is perceived to be safe and reliable.

Among its peers, Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) exited the first quarter with strong liquidity, with cash and cash equivalents being around $2.8 billion. Sociedad Quimica’s solid cash position supports its capital investment in growth projects and shareholder-friendly actions. Sociedad Quimica projects total capital expenditure of $2.7 billion for the 2025-2027 period, which includes the expansion of lithium carbonate and lithium hydroxide capacity in Chile.

ICL Group Ltd. (ICL - Free Report) ended the first quarter with cash and cash equivalents, and short-term investments and deposits of $581 million. Including unutilized revolving credit facility and securitization, ICL Group had cash resources of $1,491 million at the end of the quarter. ICL generated an operating cash flow of $195 million in the first quarter. It distributed roughly $224 million in dividends to its shareholders last year.

ALB’s Price Performance, Valuation & EstimatesAlbemarle has gained 38.3% in the past six months compared with the Zacks Chemical - Diversified industry’s rise of 25.6%.

Image Source: Zacks Investment Research

ALB is currently trading at a forward price-to-sales ratio of 3.37, above the industry. It carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ALB’s 2026 earnings implies a year-over-year rise of 1,555.7%. The EPS estimates for 2026 have been trending higher over the past 60 days.

Image Source: Zacks Investment Research

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Albemarle (ALB - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Albemarle currently has an average brokerage recommendation (ABR) of 1.88, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.88 approximates between Strong Buy and Buy.

Of the 25 recommendations that derive the current ABR, 13 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 52% and 8% of all recommendations.

Brokerage Recommendation Trends for ALB

Check price target & stock forecast for Albemarle here>>>

While the ABR calls for buying Albemarle, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in ALB?Looking at the earnings estimate revisions for Albemarle, the Zacks Consensus Estimate for the current year has increased 49.6% over the past month to $12.39.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Albemarle. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Albemarle may serve as a useful guide for investors.

It has been about a month since the last earnings report for Albemarle (ALB - Free Report) . Shares have lost about 16.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Albemarle due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Albemarle Corporation before we dive into how investors and analysts have reacted as of late.

Albemarle’s Q1 Earnings and Sales Beat on Higher Lithium Pricing and VolumesAlbemarle posted a first-quarter 2026 adjusted earnings of $2.95 per share. This compares favorably with the adjusted loss of 18 cents a year ago. The figure beat the Zacks Consensus Estimate of $1.24 by 137.9%, as higher lithium pricing and improved volumes lifted results.

On a reported basis, net income attributable to Albemarle rose to $319.1 million from $41.3 million, reflecting a much stronger operating backdrop.

Net sales rose 32.7% year over year to $1.43 billion and topped the consensus mark of $1.33 billion by 7.8%. Demand indicators stayed constructive, with global Energy Storage Systems production up 117% year over year in the quarter.

Segment HighlightsEnergy Storage net sales climbed 69.9% year over year to $891.2 million, driven by higher pricing and volumes. It surpassed the consensus estimate of $775 million. Management attributed the gain to a 51% increase in price and a 14% rise in volumes versus the prior-year quarter.

Specialties net sales increased 11.7% year over year to $358.4 million. It also beat the consensus estimate of $319 million. The improvement reflected a 7% lift in volumes and a 2% increase in pricing, helped by bromine specialties demand and pricing.

Corporate and all other net sales were $179.2 million versus $231.3 million a year ago.

The divestiture of Ketjen reduced companywide net sales by 4% year over year.

FinancialsCash and cash equivalents were $1.09 billion as of March 31, 2026, compared with $1.62 billion as of Dec. 31, 2025. Long-term debt was $1.81 billion at the quarter-end, down from $3.12 billion at the end of 2025 after the company paid down $1.3 billion of outstanding debt during the quarter. Net cash provided by operating activities was $346.2 million in the first quarter of 2026 versus $547.2 million in the year-ago period.

OutlookAlbemarle updated its 2026 outlook considerations, raising the Specialties view on stronger-than-expected bromine pricing. The company now expects Specialties net sales of $1.3-$1.5 billion and adjusted EBITDA of $225-$275 million for 2026.

For the total company, Albemarle continues to frame expectations around observed lithium market price scenarios. At an average lithium market price of about $10/kg LCE, it expects net sales of $4.1-$4.3 billion and adjusted EBITDA of $0.9-$1.0 billion. At about $20/kg LCE, net sales are projected at $5.7-$6.0 billion with adjusted EBITDA of $2.4-$2.6 billion. At about $30/kg LCE, net sales are forecast at $7.5-$7.8 billion and adjusted EBITDA at $4.2-$4.4 billion.

Albemarle expects depreciation and amortization expenses of $660-$680 million for 2026. Capital expenditures are expected to be $550-$600 million, while Interest and financing expenses are forecast to be $120-$140 million for the full year.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 61.57% due to these changes.

VGM ScoresCurrently, Albemarle has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Albemarle has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerAlbemarle is part of the Zacks Chemical - Diversified industry. Over the past month, Cabot (CBT - Free Report) , a stock from the same industry, has gained 2.2%. The company reported its results for the quarter ended March 2026 more than a month ago.

Cabot reported revenues of $904 million in the last reported quarter, representing a year-over-year change of -3.4%. EPS of $1.61 for the same period compares with $1.90 a year ago.

Cabot is expected to post earnings of $1.66 per share for the current quarter, representing a year-over-year change of -12.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.8%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Cabot. Also, the stock has a VGM Score of A.