Back to top

Image: Bigstock

Williams-Sonoma (WSM) Stock Moves -0.32%: What You Should Know

Read MoreHide Full Article

Williams-Sonoma (WSM - Free Report) ended the recent trading session at $150.67, demonstrating a -0.32% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.51% for the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 0.93%.

The seller of cookware and home furnishings's shares have seen an increase of 1.89% over the last month, surpassing the Retail-Wholesale sector's loss of 2.37% and the S&P 500's loss of 0.26%.

The investment community will be closely monitoring the performance of Williams-Sonoma in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.46, marking a 6.41% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.82 billion, reflecting a 2.53% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.25 per share and revenue of $7.76 billion, which would represent changes of -2.42% and +0.14%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Williams-Sonoma. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

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. Over the past month, there's been a 9.78% fall in the Zacks Consensus EPS estimate. Williams-Sonoma is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Williams-Sonoma currently has a Forward P/E ratio of 20.84. Its industry sports an average Forward P/E of 18.91, so one might conclude that Williams-Sonoma is trading at a premium comparatively.

It's also important to note that WSM currently trades at a PEG ratio of 2.56. 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. The Retail - Home Furnishings industry currently had an average PEG ratio of 1.62 as of yesterday's close.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 241, positioning it in the bottom 5% of all 250+ industries.

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

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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