Back to top

Image: Bigstock

Williams-Sonoma (WSM) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Williams-Sonoma (WSM - Free Report) closed at $156.52 in the latest trading session, marking a -1.37% move from the prior day. This move lagged the S&P 500's daily loss of 0.46%.

Heading into today, shares of the seller of cookware and home furnishings had lost 1.63% over the past month, outpacing the Retail-Wholesale sector's loss of 1.8% and lagging the S&P 500's gain of 1.69% in that time.

Investors will be hoping for strength from WSM as it approaches its next earnings release. The company is expected to report EPS of $2.55, up 41.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.8 billion, up 20.87% from the prior-year quarter.

WSM's full-year Zacks Consensus Estimates are calling for earnings of $11.71 per share and revenue of $7.64 billion. These results would represent year-over-year changes of +29.54% and +12.69%, respectively.

It is also important to note the recent changes to analyst estimates for WSM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 1.22% higher within the past month. WSM is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, WSM is holding a Forward P/E ratio of 13.55. This valuation marks a discount compared to its industry's average Forward P/E of 15.45.

Investors should also note that WSM has a PEG ratio of 1.5 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Home Furnishings industry currently had an average PEG ratio of 1.5 as of yesterday's close.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Williams-Sonoma, Inc. (WSM) - free report >>

Published in