In the latest close session, Williams-Sonoma (WSM) was up +1.83% at $190.53. This change outpaced the S&P 500's 0.13% loss on the day. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, added 0.15%.
Heading into today, shares of the seller of cookware and home furnishings had gained 10.59% over the past month, outpacing the Retail-Wholesale sector's gain of 2.23% and the S&P 500's gain of 3.39%.
Analysts and investors alike will be keeping a close eye on the performance of Williams-Sonoma in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.78, signifying a 2.30% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.81 billion, reflecting a 1.46% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.53 per share and revenue of $7.72 billion. These totals would mark changes of -2.96% and +0.14%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Williams-Sonoma. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Williams-Sonoma is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Williams-Sonoma has a Forward P/E ratio of 21.93 right now. For comparison, its industry has an average Forward P/E of 20.86, which means Williams-Sonoma is trading at a premium to the group.
Also, we should mention that WSM has a PEG ratio of 3.02. 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. By the end of yesterday's trading, the Retail - Home Furnishings industry had an average PEG ratio of 2.31.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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