Williams-Sonoma (WSM) ended the recent trading session at $191.49, demonstrating a -1.62% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.18%, while the tech-heavy Nasdaq depreciated by 0.25%.
Prior to today's trading, shares of the seller of cookware and home furnishings had gained 2.45% lagged the Retail-Wholesale sector's gain of 5.47% and the S&P 500's gain of 4.36%.
Market participants will be closely following the financial results of Williams-Sonoma in its upcoming release. It is anticipated that the company will report an EPS of $1.85, marking a 5.61% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.85 billion, up 2.92% from the year-ago period.
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.
Investors should also take note of any recent adjustments to analyst estimates for Williams-Sonoma. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Williams-Sonoma is holding a Zacks Rank of #4 (Sell) right now.
From a valuation perspective, Williams-Sonoma is currently exchanging hands at a Forward P/E ratio of 22.79. For comparison, its industry has an average Forward P/E of 22.1, which means Williams-Sonoma is trading at a premium to the group.
Investors should also note that WSM has a PEG ratio of 3.14 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Home Furnishings was holding an average PEG ratio of 2 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 25% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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