Williams-Sonoma (WSM) Gains As Market Dips: What You Should Know
Williams-Sonoma (WSM) closed the most recent trading day at $146.71, moving +1.28% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.55%. Elsewhere, the Dow lost 1.76%, while the tech-heavy Nasdaq lost 0.21%.
Coming into today, shares of the seller of cookware and home furnishings had lost 9.77% in the past month. In that same time, the Retail-Wholesale sector lost 3.17%, while the S&P 500 lost 2.89%.
Wall Street will be looking for positivity from Williams-Sonoma as it approaches its next earnings report date. The company is expected to report EPS of $4.82, up 22.03% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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. These recent revisions tend to reflect the evolving nature of short-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, 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 remained stagnant within the past month. 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 10.1. This represents a no noticeable deviation compared to its industry's average Forward P/E of 10.1.
Meanwhile, WSM's PEG ratio is currently 1.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WSM's industry had an average PEG ratio of 0.8 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 31, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow WSM in the coming trading sessions, be sure to utilize Zacks.com.
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