Williams-Sonoma (WSM) closed at $148.25 in the latest trading session, marking a +0.24% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.81% for the day. On the other hand, the Dow registered a gain of 1.56%, and the technology-centric Nasdaq increased by 2.06%.
The the stock of seller of cookware and home furnishings has fallen by 10.41% in the past month, lagging the Retail-Wholesale sector's loss of 5.27% and the S&P 500's loss of 6.14%.
Investors will be eagerly watching for the performance of Williams-Sonoma in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.76, signifying a 13.73% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.67 billion, indicating a 0.31% growth compared to the corresponding quarter of the prior year.
WSM's full-year Zacks Consensus Estimates are calling for earnings of $8.52 per share and revenue of $7.7 billion. These results would represent year-over-year changes of -3.07% and -0.2%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Williams-Sonoma. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.18% lower. Right now, Williams-Sonoma possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Williams-Sonoma is currently trading at a Forward P/E ratio of 17.36. Its industry sports an average Forward P/E of 18.01, so one might conclude that Williams-Sonoma is trading at a discount comparatively.
Meanwhile, WSM's PEG ratio is currently 2.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 197, placing it within the bottom 21% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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