Williams-Sonoma (WSM) closed the most recent trading day at $198.96, moving +2.56% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.48%, and the tech-heavy Nasdaq gained 0.65%.
Prior to today's trading, shares of the seller of cookware and home furnishings had gained 2.61% outpaced the Retail-Wholesale sector's gain of 1.74% and the S&P 500's gain of 0.95%.
The investment community will be paying close attention to the earnings performance of Williams-Sonoma in its upcoming release. The company is forecasted to report an EPS of $1.85, showcasing a 5.61% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.85 billion, up 2.92% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.54 per share and revenue of $7.82 billion, which would represent changes of -2.84% and +3.85%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Williams-Sonoma. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, the Zacks Consensus EPS estimate has moved 0.14% lower. At present, Williams-Sonoma boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Williams-Sonoma is presently being traded at a Forward P/E ratio of 22.71. This represents a premium compared to its industry average Forward P/E of 22.68.
Investors should also note that WSM has a PEG ratio of 3.13 right now. 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. The Retail - Home Furnishings industry currently had an average PEG ratio of 2.02 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 174, this industry ranks in the bottom 30% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Williams-Sonoma, Inc. (WSM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
