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In the latest trading session, Williams-Sonoma (WSM) closed at $163.30, marking a -0.18% move from the previous day. This move lagged the S&P 500's daily gain of 1.06%.
Heading into today, shares of the seller of cookware and home furnishings had lost 4.53% over the past month, lagging the Retail-Wholesale sector's loss of 3.94% and the S&P 500's loss of 1.05% in that time.
Investors will be hoping for strength from WSM as it approaches its next earnings release. In that report, analysts expect WSM to post earnings of $1.80 per share. This would mark year-over-year growth of 143.24%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 19.44% from the year-ago period.
WSM's full-year Zacks Consensus Estimates are calling for earnings of $9.88 per share and revenue of $7.16 billion. These results would represent year-over-year changes of +9.29% and +5.51%, respectively.
It is also important to note the recent changes to analyst estimates for WSM. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.02% higher within the past month. WSM is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, WSM is currently trading at a Forward P/E ratio of 16.56. This represents a discount compared to its industry's average Forward P/E of 17.65.
Also, we should mention that WSM has a PEG ratio of 1.97. 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. The Retail - Home Furnishings was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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WilliamsSonoma, Inc. (WSM) : Free Stock Analysis Report
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