For Immediate Release
Chicago, IL – August 27, 2026 – Zacks Equity Research shares Wayfair W as the Bull of the Day and Louisiana-Pacific Corporation LPX as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NVIDIA NVDA, HF Sinclair DINO and Par Pacific Holdings PARR
Here is a synopsis of all five stocks:
Bull of the Day:
Wayfair, a Zacks Rank #1 (Strong Buy), has quietly become one of the most compelling turnaround stories in retail.
The online home goods retailer just delivered its strongest U.S. growth since the pandemic era and its best free cash flow since 2020 — and it did so while the housing market, the single biggest driver of home furnishings demand, remains effectively frozen.
That combination is rare and the market certainly noticed. Shares closed roughly 30% higher on the day of the latest earnings report, one of the largest single-session moves for a large-cap retailer this year. The stock had entered that print down about 11% year to date, which tells you how little was expected.
A Leading Industry Group
Wayfair is part of the Zacks Internet – Commerce industry group, which currently ranks in the top 43% out of more than 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform over the next 3 to 6 months.
Take note of the favorable characteristics for this group below. The industry’s improving positioning has been driven by a positive earnings outlook for its constituent companies in aggregate. Stocks in this industry are relatively undervalued and are expected to experience above-average earnings growth, signaling a powerful combination that should lead to higher prices in the future.
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Company Description
Headquartered in Boston, Wayfair is one of the world’s largest online sellers of home goods, offering more than 18 million products from over 12,000 suppliers. Beyond its flagship site, the company operates a family of specialty brands including Joss & Main, AllModern, Birch Lane and the luxury-focused Perigold, with international operations in Canada, the U.K. and Germany.
What has changed is the business model underneath. Management spent the past two years aggressively rationalizing costs, exiting unprofitable geographies and rebuilding the platform around profitability rather than growth at any price.
The result is a company that now converts revenue growth into cash. Wayfair has also been pushing into physical retail with large-format stores, a notable pivot for a business built online, and one that appears to lift both brand awareness and digital sales in surrounding markets.
Earnings Trends and Future Estimates
The second quarter was emphatic. Total net revenue rose 7.5% to $3.52 billion, surpassing the Zacks Consensus Estimate by 1.5%, while adjusted earnings of 95 cents per share also topped the 94-cent consensus.
U.S. net revenue climbed 8.7% to $3.1 billion — the strongest domestic growth of the entire post-COVID period. Non-GAAP adjusted EBITDA reached $242 million against roughly $230 million expected, and free cash flow hit $301 million, the highest since 2020. The balance sheet ended the quarter with $1.1 billion in cash and short-term investments and $1.6 billion of total liquidity.
Management’s commentary was equally constructive. CEO Niraj Shah pointed to the best sequential second-quarter growth since 2020 and noteworthy outperformance at Perigold, while CFO Kate Gulliver said plainly that Wayfair is taking share from traditional brick-and-mortar competitors while the housing market remains stalled. For the third quarter, the company guided to high-single-digit revenue growth — against a Street looking for roughly 5% — with gross margin of 29.5% to 30.5%.
The estimate picture reflects all of this. Wayfair has topped consensus EPS estimates in each of the last four quarters. The Zacks Consensus Estimate stands at 81 cents for the current quarter and $2.95 for the current fiscal year, with those figures surging 6.58% and 5.36%, respectively, over the past 60 days. This is the kind of revision momentum that drives the Zacks Rank.
Let’s Get Technical
Wayfair has transitioned from a broken-down laggard into one of the more powerful momentum stories in consumer discretionary. This is exactly the kind of stock we want to include in our portfolio — one that is trending well and receiving positive earnings estimate revisions.
Notice the decisive breakout following the latest earnings report, with shares clearing both the 50-day (blue line) and 200-day (red line) moving averages. Gaps of that magnitude on fundamental news frequently mark the beginning of a new trend rather than the end of one.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Wayfair has recently witnessed sharp upward revisions. As long as this trend remains intact (and W continues to deliver earnings beats), the stock will likely continue its bullish run.
Bottom Line
Backed by a leading industry group, accelerating domestic growth, record post-pandemic free cash flow and a powerful wave of upward estimate revisions, it’s not difficult to see why this turnaround has captured investor attention. Currently, W sports the highly coveted Zacks Rank #1 (Strong Buy), placing it in the top 5% of Zacks-covered stocks on estimate revisions.
A company growing share while its end market shrinks is a company with genuine competitive advantage — and when housing does eventually turn, Wayfair will have that tailwind on top of the share gains it is banking now. If you haven’t already done so, be sure to put Wayfair on your watchlist.
Bear of the Day:
Louisiana-Pacific Corporation is a manufacturer of engineered wood building products, operating through two principal segments. Its Siding business produces the SmartSide and ExpertFinish product lines used in residential and light commercial construction, while its OSB segment manufactures oriented strand board, the structural panel used for roofs, walls and floors in new home construction.
The company has spent the past decade methodically shifting its center of gravity from commodity OSB toward higher-margin, branded Siding — a genuinely sound strategy that has delivered 10% compound annual volume growth in SmartSide over 15 years. The problem is that the transition is not finished, and the commodity half of the business is now actively destroying earnings.
Management has been candid about the environment. Chief Executive Officer Jason Ringblom described a housing market that “feels like it’s stuck in neutral,” and the company is explicitly assuming no improvement in underlying markets for the remainder of the year. Elevated mortgage rates continue to suppress both new construction and the repair-and-remodel activity that drives Siding demand, while OSB pricing has collapsed on soft demand across North and South America.
The Zacks Rundown
Louisiana-Pacific has been a clear laggard, and a Zacks Rank #5 (Strong Sell) reflects sharply unfavorable earnings estimate revision trends. Analysts have been cutting numbers aggressively — the consensus estimate for the second quarter was revised 18% lower in just the 30 days ahead of the latest earnings report, and the company still missed.
Shares are part of the Zacks Building Products – Wood industry group, which currently ranks in the bottom 21% out of more than 250 Zacks Ranked Industries. Because this industry is ranked in the bottom half of all Zacks Ranked Industries, we expect it to underperform the market over the next 3 to 6 months. While individual names can outperform a weak group, the industry association tends to cap the size and durability of any rally.
Compounding the concern is valuation. Despite collapsing earnings, LPX has recently traded at a forward P/E near 62 against an industry average closer to 27. This is a declining business trading at a premium multiple — a combination that leaves no margin for further disappointment.
Cracks in the Foundation: A Big Miss and Falling Estimates
The second quarter, reported August 5th, was poor on nearly every line. Louisiana-Pacific posted earnings of $0.40 per share, missing the Zacks Consensus Estimate of $0.58 by a wide 31% and collapsing roughly 60% from $0.99 in the year-ago period. Net sales of $664 million declined 12.1% year over year and came in 1.48% below the consensus mark.
The segment detail is where the damage lives. Siding sales declined 4%, as a 7% price increase was overwhelmed by an 11% volume decline against the year-ago quarter, with primed Siding volume down 12%. OSB was worse: prices came in roughly $15 below the company’s own guidance, driving a $46 million EBITDA decline in that segment alone.
Most concerning is the forward guidance. Management now projects OSB adjusted EBITDA of negative $45 million in the third quarter and negative $120 million for the full year, assuming flat prices. An entire operating segment is expected to lose money at the EBITDA line for the year.
The company also guided full-year Siding net sales to a roughly 1% decline, cut its capital expenditure budget by $70 million to about $320 million — largely by delaying OSB maintenance projects. For the full year, the Zacks Consensus Estimate has been slashed 41.5% to $1.17 per share on $2.5 billion in revenue, implying declines of roughly 56% and 7%, respectively. These are precisely the types of negative trends that the bears like to see.
Technical Outlook
LPX stock has been carving out a well-defined downtrend. Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping lower, with shares trading below them and drifting toward the lower end of their 52-week range.
The persistent decline has produced a classic “death cross,” wherein the 50-day moving average crosses below the 200-day moving average — a bearish technical signal that often precedes further weakness. Shares would need to mount a serious, high-volume move to the upside and show improving earnings estimate revisions to warrant taking any long positions.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock doesn’t deserve a spot in household portfolios right now. An operating segment guided to lose $120 million at the EBITDA line, a 31% earnings miss, a premium valuation on falling numbers, and a housing market management itself calls “stuck in neutral” leave little reason for optimism in the near term.
Falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend. Potential investors may want to give this stock the cold shoulder, or perhaps consider including it as part of a short or hedge strategy.
Additional content:
2 Oil Refiners Outperforming NVIDIA: Are They Better Buys?
The Iran war has dominated the headlines of business newspapers as increasing oil prices rattle the global market. Investors have been considering the oil-energy sector to spot the stocks that are benefiting from the strong commodity pricing environment.
At the same time, despite the major macroeconomic events unsettling global equity markets, investors continue to chase opportunities tied to the AI revolution. Against this backdrop, NVIDIA has long been one of Wall Street’s most sought-after stocks as it is viewed as one of the leading ways to gain exposure to the AI revolution.
It would not be surprising if investors allocating money to NVDA also began looking at select energy companies to capitalize on opportunities arising from the ongoing conflicts in the Middle East. After all, two leading U.S. refiners — HF Sinclair and Par Pacific Holdings — have already outperformed NVDA based on their recent share-price performance. Let’s delve deeper.
Refining Margin to Stay Exceptionally Strong
Per data from the International Energy Agency (IEA), the throughput of refineries across the globe in July plunged roughly 6% year over year. The reason for this is that globally, the energy market is experiencing disruption in fuel production due to the war in Iran and damage to Russian refining infrastructure. Thus, the supply of refined fuels such as gasoline and diesel is lower worldwide, and the IEA expects refining activity to remain weak in the third quarter.
The IEA has also forecast worldwide refinery throughput to slip by 2.5 million barrels per day in 2026. Most importantly, the key refiners in the United States have no other option but to operate at near maximum capacities, thereby generating exceptionally strong margins.
In other words, the high U.S. refinery utilizations are creating more opportunities for refiners like Par Pacific and HF Sinclair, which have soared 110.1% and 102.4%, respectively, year to date, outpacing NVDA’s 14.3% gain.
Why PARR & DINO are Attractive Bets Now
Par Pacific continued to benefit from a strong refining market as it entered the third quarter. Its refining index, which is a rough measure of how profitable it is to turn crude oil into products like gasoline and diesel, was still very high in July at $31.34 per barrel, only slightly below the second-quarter average of about $33.
Demand for fuels remained strong, especially on the mainland, while global fuel inventories stayed relatively tight. In simple terms, there was still healthy demand for refined products and limited excess supply, which helped PARR continue earning attractive margins from its refineries.
PARR appears well-positioned to benefit from still-strong refining margins, firm fuel demand and tight global product inventories.
HF Sinclair is not going to be an exception. On its second-quarter 2026 call, the company mentioned that wars in the Middle East and Ukraine have disrupted refining capacities. DINO mentioned that inventories of fuel in the United States and in its key operating regions are low, especially when the demand for the end products remains healthy, thereby creating opportunities to continue to earn healthy refining margins.
Last Words
While investors continue to pursue opportunities in the AI space, the favorable refining backdrop makes PARR and DINO stocks attractive right now. Both companies currently sport a Zacks #1 Rank (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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NVIDIA Corporation (NVDA): Free Stock Analysis Report
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Wayfair Inc. (W): Free Stock Analysis Report
Par Pacific Holdings, Inc. (PARR): Free Stock Analysis Report
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