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

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In the latest trading session, Williams-Sonoma (WSM) closed at $136.45, marking a -0.59% move from the previous day. This change lagged the S&P 500's 0.13% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Heading into today, shares of the seller of cookware and home furnishings had gained 8.86% over the past month, outpacing the Retail-Wholesale sector's gain of 8.19% and the S&P 500's gain of 5.55% 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 $3.49 per share, which would represent year-over-year growth of 7.72%. Our most recent consensus estimate is calling for quarterly revenue of $2.03 billion, up 4.44% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.13 per share and revenue of $8.64 billion, which would represent changes of +8.62% and +4.8%, respectively, from the prior year.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 1.03% lower. Williams-Sonoma is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Williams-Sonoma is currently trading at a Forward P/E ratio of 8.51. Its industry sports an average Forward P/E of 8.51, so we one might conclude that Williams-Sonoma is trading at a no noticeable deviation comparatively.

Also, we should mention that WSM has a PEG ratio of 1.49. 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 1.1 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 188, which puts it in the bottom 26% 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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