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

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In the latest trading session, Williams-Sonoma (WSM) closed at $153.99, marking a -1.5% move from the previous day. This change lagged the S&P 500's daily loss of 0.47%.

Coming into today, shares of the seller of cookware and home furnishings had lost 1.98% in the past month. In that same time, the Retail-Wholesale sector lost 1%, while the S&P 500 gained 3.38%.

Investors will be hoping for strength from WSM as it approaches its next earnings release. On that day, WSM is projected to report earnings of $2.55 per share, which would represent year-over-year growth of 41.67%. Meanwhile, our latest consensus estimate is calling for revenue of $1.8 billion, up 20.87% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.71 per share and revenue of $7.64 billion. These totals would mark changes of +29.54% and +12.69%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for WSM. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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, the Zacks Consensus EPS estimate has moved 1.22% higher. WSM currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that WSM has a Forward P/E ratio of 13.35 right now. For comparison, its industry has an average Forward P/E of 15.69, which means WSM is trading at a discount to the group.

Investors should also note that WSM has a PEG ratio of 1.47 right now. 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. WSM's industry had an average PEG ratio of 1.47 as of yesterday's close.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% 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.

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


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