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

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Williams-Sonoma (WSM - Free Report) closed at $149.62 in the latest trading session, marking a -1.23% move from the prior day. This change lagged the S&P 500's daily loss of 0.96%. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq depreciated by 1.18%.

Shares of the seller of cookware and home furnishings have appreciated by 16.15% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 7.74% and the S&P 500's gain of 4.3%.

The investment community will be paying close attention to the earnings performance of Williams-Sonoma in its upcoming release. The company's earnings per share (EPS) are projected to be $1.76, reflecting a 3.83% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.78 billion, showing a 3.86% drop compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.99 per share and revenue of $7.54 billion. These totals would mark changes of +7.54% and -2.7%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Williams-Sonoma. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.34% decrease. Williams-Sonoma is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Williams-Sonoma is currently exchanging hands at a Forward P/E ratio of 18.97. This indicates a discount in contrast to its industry's Forward P/E of 19.62.

We can also see that WSM currently has a PEG ratio of 2.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Home Furnishings industry had an average PEG ratio of 2.26.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 190, finds itself in the bottom 25% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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