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Williams-Sonoma (WSM) Gains As Market Dips: What You Should Know

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In the latest trading session, Williams-Sonoma (WSM) closed at $133.92, marking a +0.79% move from the previous day. This change outpaced the S&P 500's 1.84% loss on the day. Elsewhere, the Dow lost 1.38%, while the tech-heavy Nasdaq lost 0.38%.

Heading into today, shares of the seller of cookware and home furnishings had lost 14.95% over the past month, lagging the Retail-Wholesale sector's loss of 0.61% and the S&P 500's loss of 1.96% in that time.

Wall Street will be looking for positivity from Williams-Sonoma as it approaches its next earnings report date. On that day, Williams-Sonoma is projected to report earnings of $4.82 per share, which would represent year-over-year growth of 22.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.57 billion, up 11.96% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Williams-Sonoma. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Williams-Sonoma is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Williams-Sonoma's current valuation metrics, including its Forward P/E ratio of 9.26. Its industry sports an average Forward P/E of 10.77, so we one might conclude that Williams-Sonoma is trading at a discount comparatively.

It is also worth noting that WSM currently has a PEG ratio of 1.02. 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. The Retail - Home Furnishings industry currently had an average PEG ratio of 0.75 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 63, which puts it in the top 25% 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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