In the latest close session, Williams-Sonoma (WSM) was up +1.99% at $192.86. The stock outperformed the S&P 500, which registered a daily gain of 1.23%. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 1.86%.
Shares of the seller of cookware and home furnishings have depreciated by 6.09% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 1.39%, and the S&P 500's gain of 2.45%.
Analysts and investors alike will be keeping a close eye on the performance of Williams-Sonoma in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.85, reflecting a 5.61% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.85 billion, up 2.92% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.54 per share and a revenue of $7.82 billion, signifying shifts of -2.84% and +1.38%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Williams-Sonoma. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.14% fall in the Zacks Consensus EPS estimate. Williams-Sonoma is currently a Zacks Rank #3 (Hold).
In terms of valuation, Williams-Sonoma is presently being traded at a Forward P/E ratio of 22.14. This indicates a discount in contrast to its industry's Forward P/E of 23.53.
We can also see that WSM currently has a PEG ratio of 3.05. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Home Furnishings industry was having an average PEG ratio of 2.25.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 29% of all 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.
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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