Takeaway: Hedgeye's "triple-tested" process identified Warby Parker ($WRBY) as a high-probability winner.

Warby Parker (<abbr name='Warby Parker Inc. Class A'>WRBY</abbr>): +38% In Less Than 3 Months—and Keith McCullough’s Signal Remains Bullish - Screenshot 2025 01 30 100405

This week’s Stock Spotlight features Warby Parker (WRBY)—one of the top-performers on Hedgeye's exclusive list of Signal Strength Stocks. Retail Analyst Brian McGough and Hedgeye's Risk-Manager-In-Chief Keith McCullough remain confident that WRBY still offers substantial upside potential.

Our proven “triple-tested” stock-picking process combines fundamental, quantitative, and macro analysis. 

Here’s how we identified WRBY as a high-probability winner: 

1) Signal Approved 

Hedgeye CEO Keith McCullough's quantitative Buy/Sell signal turned bullish on WRBY in November 2024. Signal Strength Stocks subscribers received Keith's signal before the market opened on November 11, 2024. WRBY has gained +38% since then—and Keith's signal remains bullish.

2) FUNDAMENTALLY APPROVED

Veteran Retail Analyst and Hedgeye Co-Founder Brian McGough elevated WRBY to a Best Idea Long shortly after Keith's signal turned bullish. McGough cited the company's strategic shift, growth trajectory, and fundamental strength:

  • Smarter Store Strategy: Moving from high-rent flagship locations to cost-effective ‘B properties’, where core customers actually shop.
  • Massive Growth Runway: Expanding from 271 stores today to a potential 3,000 over the next two decades.
  • Limited Competition: A rare retail growth story that Amazon can’t easily disrupt.

"The reality is that it literally has like 20 years of growth ahead of it. And the growth curve just inflected over the past six months... The stock went from $14 when we went long it up to about $24, but this stock is a two to three bagger over a tail duration. It's got signal strength. The upcoming quarter looks good. And I like the setup here on Warby Parker."

3) MACRO APPROVED

Hedgeye’s macro framework identifies the current USA Quad 2 setup as favorable for WRBY. Quad 2 is characterized by both growth and inflation acceleratingcreating strong tailwinds for businesses tied to discretionary spending and high-end consumer markets.

Warby Parker is well-positioned to capitalize on this, with its focus on tapping into the growing demand for quality, direct-to-consumer eyewear as spending in this category rises.

The Bottom Line:

Keith McCullough’s Signal Strength Stocks identified WRBY early—and it’s already +38% since being added. With a bullish Quad 2 backdrop, fundamental tailwinds, and long-term growth runway, this stock remains a high-probability winner based on our triple-tested investing process.

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