Williams-Sonoma (WSM) Gains As Market Dips: What You Should Know
Williams-Sonoma (WSM) closed the most recent trading day at $144.75, moving +0.04% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.06%.
Prior to today's trading, shares of the seller of cookware and home furnishings had gained 19.53% over the past month. This has outpaced the Retail-Wholesale sector's gain of 11.4% and the S&P 500's gain of 8.78% in that time.
Williams-Sonoma will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.47, up 7.1% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.03 billion, up 4.07% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.08 per share and revenue of $8.63 billion. These totals would mark changes of +8.28% and +4.69%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Williams-Sonoma. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.28% lower within the past month. Williams-Sonoma is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Williams-Sonoma has a Forward P/E ratio of 9 right now. For comparison, its industry has an average Forward P/E of 9, which means Williams-Sonoma is trading at a no noticeable deviation to the group.
We can also see that WSM currently has a PEG ratio of 1.58. 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. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 1.2 based on yesterday's closing prices.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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WilliamsSonoma, Inc. (WSM) : Free Stock Analysis Report
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