Williams-Sonoma (WSM) ended the recent trading session at $199.27, demonstrating a -1.69% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.24% for the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.67%.
Prior to today's trading, shares of the seller of cookware and home furnishings had gained 13.48% outpaced the Retail-Wholesale sector's gain of 3.1% and the S&P 500's gain of 1.95%.
Investors will be eagerly watching for the performance of Williams-Sonoma in its upcoming earnings disclosure. On that day, Williams-Sonoma is projected to report earnings of $1.78 per share, which would represent year-over-year growth of 2.3%. 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.
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.
Any recent changes to analyst estimates for Williams-Sonoma should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Williams-Sonoma presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Williams-Sonoma currently has a Forward P/E ratio of 23.75. This signifies a premium in comparison to the average Forward P/E of 21.72 for its industry.
It is also worth noting that WSM currently has a PEG ratio of 3.28. 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 currently had an average PEG ratio of 2.85 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 198, placing it within the bottom 20% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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