Stock Price & Analysis

Analysis and Insights

To determine whether it’s a good time to buy or sell Warby Parker (WRBY) stock, we need to analyze both fundamental and technical factors.

Fundamental Analysis:

Warby Parker has shown resilience in a competitive market, with recent partnerships enhancing its growth prospects. The company's collaboration with Target is expected to expand its customer base and improve brand visibility. However, the eyewear industry remains highly competitive, with established players like Luxottica dominating the market. Warby Parker's ability to maintain its pricing strategy while competing with larger rivals will be critical.

Valuation Analysis:

Warby Parker's current valuation metrics show a mixed picture. The stock is trading at a price-to-sales ratio of 2.5, which is reasonable compared to some peers. However, the company is still operating at a loss, and investors are pricing in future growth expectations.

Analyst Sentiment:

Analyst opinions on Warby Parker are mixed. While some analysts maintain a "Buy" rating, citing the company's strong brand and growth potential, others have downgraded the stock due to concerns about profitability and competitive pressures.

Technical Analysis:

The stock has shown recent strength, closing up 2.61% in the regular market. The price trend indicates potential buying interest, but it’s important to monitor for signs of resistance or reversal.

Conclusion:

Based on the analysis, Warby Parker stock presents a mixed outlook. While the company has growth potential and a strong brand, profitability concerns and competitive pressures remain significant risks. Investors should consider holding WRBY if they believe in the company's long-term strategy but remain cautious of market dynamics.

Price Prediction for WRBY Stock in 2025

Warby Parker (WRBY) is expected to reach a price of $24 by the end of 2025, driven by its strategic partnership with Target and potential sales growth. The stock currently trades at $21.29, showing moderate upside potential. However, risks like high valuation and execution challenges may limit further gains.

The S1 support level for WRBY Stock is $19.87 ,The R1 resistant level for WRBY Stock is $24.29.

As of the end of day on 2025-03-14, the price of WRBY Stock was $20.45.

The target price for WRBY Stock according to analyst rating is 27.36, with the highest price target at 32.00 and the lowest at 23.00. Analysts have a Moderate Buy rating on WRBY Stock overall.

The market cap of WRBY is $2.5B.

Analysis and Insights

Warby Parker (WRBY) appears to be overvalued based on its current financial metrics and market sentiment.

Valuation Metrics:

• Price-to-Sales (PS) Ratio: Warby Parker's PS ratio is 3.78, indicating a premium relative to its revenue.
• Price-to-Book (PB) Ratio: The PB ratio of 8.6 suggests the stock is trading significantly above its book value.
• EV/EBITDA: The EV/EBITDA ratio is 142.22, reflecting a high valuation compared to earnings.

Analyst Sentiment:

• Analysts have mixed opinions, with some downgrading the stock to "Hold" or "Strong Sell" and others maintaining a "Buy" rating.
• The average price target is $24, with a range of $19 to $28, indicating cautious optimism.

Market Sentiment:

• The stock's recent performance shows volatility, with a 2.61% increase on March 11, but long-term trends remain uncertain.

Conclusion:

Warby Parker's high valuation metrics and mixed analyst sentiment suggest it may be overvalued. Investors should exercise caution and monitor the company's ability to meet growth expectations.

Warby Parker Inc. is a lifestyle brand that operates at the intersection of design, technology, healthcare, and social enterprise. It offers holistic vision care by selling eyewear products and providing optical services directly to consumers through its retail stores and e-commerce platform. It sells a range of prescription and non-prescription eyewear, including glasses, sunglasses, and contact lenses. Its customers can customize their prescription lenses with a variety of options, including single-vision, progressive, light-responsive, blue-light-filtering, and non-prescription lenses. It also offers in-house technologies like Virtual Vision Test and Virtual Try-On to enhance the overall customer experience. It sells its own brand of contacts, Scout by Warby Parker, and third-party contact lenses; this allows it to provide customers a vision care offering. Its Website and mobile app make it easy for its customers to browse, virtually try on, and purchase glasses.

The price prediction for WRBY stock by 2030 is approximately $28 per share, driven by its strategic partnerships with Target and Champion, which are expected to enhance sales and market presence. However, the stock's current RSI of 27.19 suggests it may be undervalued, and the Fibonacci pivot at $22.60 indicates potential support for future growth.

WRBY has a total of 2140 employees.