1 Brilliant Stock to Buy in December and Hold for the Next 5 Years

Core Viewpoint - The housing market is showing early signs of improvement, which could positively impact companies like Wayfair that have underperformed in the past year [1][2]. Group 1: Company Performance - Wayfair's stock has declined nearly 85% from its 2021 peak, with revenue growth moderating after a pandemic-driven surge [2]. - The company reported a 2% year-over-year revenue decline in Q3, but sales are stabilizing above 2019 levels, indicating potential for recovery [5][6]. - Wayfair's quarterly revenue peaked at $4.3 billion in Q2 2020 and has since flattened around$2.8 billion, allowing management to focus on profitability [6][10]. Group 2: Cost Management - Wayfair has improved its free cash flow, which was negative $1.1 billion in Q4 2023 but has returned to positive territory at$43 million [8]. - Management attributes this improvement to better cost efficiency and spending discipline, achieving a positive adjusted EBITDA margin in the last two quarters [9]. Group 3: Market Opportunities - A recent report indicates that 82% of consumers are open to shopping for home decor items online, positioning Wayfair as a leading destination in this market [11]. - The current share price of $54 results in a price-to-sales (P/S) ratio of 0.55, which is attractive compared to typical discount retailers [12]. - If Wayfair can achieve 10% annual revenue growth, its P/S multiple could increase significantly, leading to a substantial rise in stock value [12].