U.S. Markets closed

Looking for Value? Why It Might Be Time to Try Williams-Sonoma (WSM)

Zacks Equity Research

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Williams-Sonoma, Inc. WSM.

Williams-Sonoma in Focus

WSM may be an interesting play thanks to its forward PE of 13.7, its P/S ratio of 0.9, and its decent dividend yield of 3%. These factors suggest that Williams-Sonoma is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that WSM has decent revenue metrics to back up its earnings.

Williams-Sonoma, Inc. PE Ratio (TTM)

Williams-Sonoma, Inc. PE Ratio (TTM)

Williams-Sonoma, Inc. pe-ratio-ttm | Williams-Sonoma, Inc. Quote

But before you think that Williams-Sonoma is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 1.7% in the past 30 days, thanks to 10 upward revisions in the past one month compared to none lower.

This estimate strength is actually enough to push WSM to a Zacks Rank #3 (Hold), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So really, Williams-Sonoma is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research