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

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Williams-Sonoma (WSM - Free Report) closed at $163.77 in the latest trading session, marking a -0.63% move from the prior day. This change lagged the S&P 500's daily gain of 0.94%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq lost 0.55%.

Heading into today, shares of the seller of cookware and home furnishings had lost 0.65% over the past month, outpacing the Retail-Wholesale sector's loss of 7.22% and the S&P 500's loss of 4.63% in that time.

Wall Street will be looking for positivity from Williams-Sonoma as it approaches its next earnings report date. In that report, analysts expect Williams-Sonoma to post earnings of $4.82 per share. This would mark year-over-year growth of 22.03%. Our most recent consensus estimate is calling for quarterly revenue of $2.57 billion, up 11.89% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Williams-Sonoma. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.29% higher within the past month. Williams-Sonoma is currently a Zacks Rank #3 (Hold).

Investors should also note Williams-Sonoma's current valuation metrics, including its Forward P/E ratio of 11.48. This valuation marks a discount compared to its industry's average Forward P/E of 12.36.

Investors should also note that WSM has a PEG ratio of 1.27 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. WSM's industry had an average PEG ratio of 0.82 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 21, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


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