Williams-Sonoma (WSM) closed at $210.00 in the latest trading session, marking a -2.57% move from the prior day. This change lagged the S&P 500's 0.55% gain on the day. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 0.91%.
Heading into today, shares of the seller of cookware and home furnishings had gained 13.76% over the past month, outpacing the Retail-Wholesale sector's gain of 4.28% and the S&P 500's gain of 0.71%.
Investors will be eagerly watching for the performance of Williams-Sonoma in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.88, indicating a 12.2% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.42 billion, indicating a 1.67% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.69 per share and a revenue of $7.87 billion, representing changes of -1.14% and +2.06%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Williams-Sonoma. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Williams-Sonoma holds a Zacks Rank of #2 (Buy).
Digging into valuation, Williams-Sonoma currently has a Forward P/E ratio of 24.8. This represents no noticeable deviation compared to its industry average Forward P/E of 24.8.
We can also see that WSM currently has a PEG ratio of 3.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Home Furnishings industry had an average PEG ratio of 2.24.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 183, this industry ranks in the bottom 26% 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.
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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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