Back to top

Image: Bigstock

Williams-Sonoma (WSM) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Read MoreHide Full Article

Williams-Sonoma (WSM - Free Report) closed the most recent trading day at $137.79, moving -0.92% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.77%. Meanwhile, the Dow lost 0.6%, and the Nasdaq, a tech-heavy index, lost 1.05%.

The the stock of seller of cookware and home furnishings has fallen by 2.21% in the past month, leading the Retail-Wholesale sector's loss of 7.43% and the S&P 500's loss of 5.85%.

Analysts and investors alike will be keeping a close eye on the performance of Williams-Sonoma in its upcoming earnings disclosure. On that day, Williams-Sonoma is projected to report earnings of $1.46 per share, which would represent a year-over-year decline of 6.41%. Our most recent consensus estimate is calling for quarterly revenue of $1.82 billion, down 2.53% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.25 per share and a revenue of $7.76 billion, signifying shifts of -2.42% and +0.14%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Williams-Sonoma. These revisions help to show the ever-changing nature of near-term business trends. 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 currently a Zacks Rank #3 (Hold).

From a valuation perspective, Williams-Sonoma is currently exchanging hands at a Forward P/E ratio of 19.18. This expresses a premium compared to the average Forward P/E of 18.92 of its industry.

It's also important to note that WSM currently trades at a PEG ratio of 2.35. 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. The Retail - Home Furnishings industry had an average PEG ratio of 1.58 as trading concluded yesterday.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 216, positioning it in the bottom 15% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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