Williams-Sonoma (WSM) closed at $172.20 in the latest trading session, marking a +1.06% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.14%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.38%.
Prior to today's trading, shares of the seller of cookware and home furnishings had gained 7.27% outpaced the Retail-Wholesale sector's gain of 4.28% and the S&P 500's gain of 5.35%.
Market participants will be closely following the financial results of Williams-Sonoma in its upcoming release. The company's upcoming EPS is projected at $1.78, signifying a 2.30% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.81 billion, indicating a 1.46% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.53 per share and a revenue of $7.72 billion, signifying shifts of -2.96% and +0.14%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Williams-Sonoma. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Williams-Sonoma holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Williams-Sonoma has a Forward P/E ratio of 19.97 right now. This signifies no noticeable deviation in comparison to the average Forward P/E of 19.97 for its industry.
We can also see that WSM currently has a PEG ratio of 2.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Home Furnishings industry had an average PEG ratio of 2.26 as trading concluded yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Williams-Sonoma, Inc. (WSM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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