Williams-Sonoma (WSM) closed the most recent trading day at $210.20, moving +1.56% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.32%. Elsewhere, the Dow saw an upswing of 1.04%, while the tech-heavy Nasdaq appreciated by 0.14%.
The seller of cookware and home furnishings's stock has climbed by 26.49% in the past month, exceeding the Retail-Wholesale sector's gain of 2.39% and the S&P 500's gain of 3.08%.
Analysts and investors alike will be keeping a close eye on the performance of Williams-Sonoma in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.78, indicating a 2.3% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.81 billion, up 1.46% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.53 per share and a revenue of $7.72 billion, indicating changes of -2.96% and +0.14%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Williams-Sonoma. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. Right now, Williams-Sonoma possesses a Zacks Rank of #2 (Buy).
Digging into valuation, Williams-Sonoma currently has a Forward P/E ratio of 24.25. This denotes a premium relative to the industry average Forward P/E of 21.74.
Meanwhile, WSM's PEG ratio is currently 3.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Home Furnishings industry held an average PEG ratio of 2.83.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 178, positioning it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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