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Williams-Sonoma (WSM) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Williams-Sonoma (WSM - Free Report) closed at $174.77, marking a -1.2% move from the previous day. This change lagged the S&P 500's daily gain of 0.33%.

Coming into today, shares of the seller of cookware and home furnishings had gained 35.64% in the past month. In that same time, the Retail-Wholesale sector gained 1.31%, while the S&P 500 gained 4.77%.

WSM will be looking to display strength as it nears its next earnings release. In that report, analysts expect WSM to post earnings of $1.71 per share. This would mark year-over-year growth of 131.08%. Our most recent consensus estimate is calling for quarterly revenue of $1.48 billion, up 19.45% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.44 per share and revenue of $7.16 billion. These totals would mark changes of +4.42% and +5.5%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for WSM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 22.13% higher. WSM currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, WSM is currently trading at a Forward P/E ratio of 19.56. Its industry sports an average Forward P/E of 19.16, so we one might conclude that WSM is trading at a premium comparatively.

Investors should also note that WSM has a PEG ratio of 2.33 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 2.01 based on yesterday's closing prices.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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