Williams-Sonoma (WSM) closed at $185.36 in the latest trading session, marking a -1.14% move from the prior day. This change lagged the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.52%.
The stock of seller of cookware and home furnishings has fallen by 6.07% in the past month, lagging the Retail-Wholesale sector's loss of 5.41% and the S&P 500's gain of 0.71%.
The upcoming earnings release of Williams-Sonoma will be of great interest to investors. The company is predicted to post an EPS of $1.85, indicating a 5.61% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.85 billion, reflecting a 2.51% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.54 per share and revenue of $7.82 billion, indicating changes of -2.84% and +1.38%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.33% fall in the Zacks Consensus EPS estimate. Williams-Sonoma is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Williams-Sonoma is presently trading at a Forward P/E ratio of 21.95. This denotes no noticeable deviation relative to the industry average Forward P/E of 21.95.
It's also important to note that WSM currently trades at a PEG ratio of 3.03. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Retail - Home Furnishings industry was having an average PEG ratio of 2.64.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 38% of over 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.
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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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