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Williams-Sonoma Q2 Preview: Can Shares Uphold Strength?
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The Zacks Retail and Wholesale Sector has been hit harder than most throughout 2022, down nearly 20% and vastly underperforming the general market. Still, the sector has gained 4% over the last month, perhaps indicating that the worst is over.
A very popular stock in the sector, Williams-Sonoma (WSM - Free Report) , is on deck to unveil Q2 results on Wednesday, August 24th, after market close.
Headquartered in San Francisco, CA, Williams-Sonoma is a multi-channel specialty retailer of premium quality home products. In addition, the company carries a Zacks Rank #3 (Hold) with an overall VGM Score of an A.
How does the retailer stack up heading into the print? Let’s take a closer look.
Share Performance & Valuation
Year-to-date, Williams-Sonoma shares have been notably defensive, declining a marginal 1% and easily outperforming the S&P 500’s decline of 13%.
Image Source: Zacks Investment Research
Even over the last month, WSM shares have soared, tacking on a stellar 21% in value and crushing the general market’s climb of nearly 5%.
Image Source: Zacks Investment Research
The favorable price action of WSM shares tells us that buyers have defended the stock much higher than most, undoubtedly a positive.
In addition to inspiring share performance, WSM shares also trade at rock-solid valuation levels, further displayed by its Style Score of an A for Value.
The company’s 9.8X forward earnings multiple is well beneath its five-year median of 13.9X and represents a steep 62% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have had mixed views for the quarter to be reported, with a singular downwards and upwards estimate revision. Still, the Zacks Consensus EPS Estimate of $3.52 pencils in a rock-solid 8.6% Y/Y uptick in quarterly earnings.
Image Source: Zacks Investment Research
William-Sonoma’s top-line appears to be in fine health as well – WSM is projected to have generated $2.1 billion in revenue throughout the quarter, registering a 4.3% uptick from year-ago quarterly sales of $1.9 billion.
Quarterly Performance & Market Reactions
The company has been on an incredible earnings streak – WSM has exceeded the Zacks Consensus EPS Estimate in 18 consecutive quarters. Just in its latest print, Williams-Sonoma recorded a sizable 17% bottom-line beat.
Top-line results have also been remarkable; WSM has posted nine top-line beats over its last ten quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Day-traders who prefer the long side will appreciate this – shares have moved upwards following each of the company’s last six quarterly reports, all by at least 2%.
Putting Everything Together
Williams-Sonoma shares have posted market-beating returns year-to-date and over the last month, signaling that buyers have been busy.
In addition, shares trade at enticing valuation levels, well below their Zacks Sector Average and five-year median.
Analysts have had mixed views for the quarter, but estimates reflect solid growth on both the top and bottom-lines.
Furthermore, the company has consistently exceeded quarterly estimates, and the market has reacted well as of late following each of its previous six.
Heading into the release, Williams-Sonoma (WSM - Free Report) carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 2.2%.
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Williams-Sonoma Q2 Preview: Can Shares Uphold Strength?
The Zacks Retail and Wholesale Sector has been hit harder than most throughout 2022, down nearly 20% and vastly underperforming the general market. Still, the sector has gained 4% over the last month, perhaps indicating that the worst is over.
A very popular stock in the sector, Williams-Sonoma (WSM - Free Report) , is on deck to unveil Q2 results on Wednesday, August 24th, after market close.
Headquartered in San Francisco, CA, Williams-Sonoma is a multi-channel specialty retailer of premium quality home products. In addition, the company carries a Zacks Rank #3 (Hold) with an overall VGM Score of an A.
How does the retailer stack up heading into the print? Let’s take a closer look.
Share Performance & Valuation
Year-to-date, Williams-Sonoma shares have been notably defensive, declining a marginal 1% and easily outperforming the S&P 500’s decline of 13%.
Image Source: Zacks Investment Research
Even over the last month, WSM shares have soared, tacking on a stellar 21% in value and crushing the general market’s climb of nearly 5%.
Image Source: Zacks Investment Research
The favorable price action of WSM shares tells us that buyers have defended the stock much higher than most, undoubtedly a positive.
In addition to inspiring share performance, WSM shares also trade at rock-solid valuation levels, further displayed by its Style Score of an A for Value.
The company’s 9.8X forward earnings multiple is well beneath its five-year median of 13.9X and represents a steep 62% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have had mixed views for the quarter to be reported, with a singular downwards and upwards estimate revision. Still, the Zacks Consensus EPS Estimate of $3.52 pencils in a rock-solid 8.6% Y/Y uptick in quarterly earnings.
Image Source: Zacks Investment Research
William-Sonoma’s top-line appears to be in fine health as well – WSM is projected to have generated $2.1 billion in revenue throughout the quarter, registering a 4.3% uptick from year-ago quarterly sales of $1.9 billion.
Quarterly Performance & Market Reactions
The company has been on an incredible earnings streak – WSM has exceeded the Zacks Consensus EPS Estimate in 18 consecutive quarters. Just in its latest print, Williams-Sonoma recorded a sizable 17% bottom-line beat.
Top-line results have also been remarkable; WSM has posted nine top-line beats over its last ten quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Day-traders who prefer the long side will appreciate this – shares have moved upwards following each of the company’s last six quarterly reports, all by at least 2%.
Putting Everything Together
Williams-Sonoma shares have posted market-beating returns year-to-date and over the last month, signaling that buyers have been busy.
In addition, shares trade at enticing valuation levels, well below their Zacks Sector Average and five-year median.
Analysts have had mixed views for the quarter, but estimates reflect solid growth on both the top and bottom-lines.
Furthermore, the company has consistently exceeded quarterly estimates, and the market has reacted well as of late following each of its previous six.
Heading into the release, Williams-Sonoma (WSM - Free Report) carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 2.2%.