In the latest close session, Williams-Sonoma (WSM) was down 1.21% at $205.72. The stock's change was less than the S&P 500's daily loss of 0.01%. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq increased by 0.17%.
Shares of the seller of cookware and home furnishings have appreciated by 14.8% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 4.91%, and the S&P 500's gain of 0.78%.
The upcoming earnings release of Williams-Sonoma will be of great interest to investors. On that day, Williams-Sonoma is projected to report earnings of $2.88 per share, which would represent a year-over-year decline of 12.2%. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $8.69 per share and a revenue of $7.87 billion, signifying shifts of -1.14% and +2.06%, 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Williams-Sonoma is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Williams-Sonoma is currently being traded at a Forward P/E ratio of 23.96. This represents no noticeable deviation compared to its industry average Forward P/E of 23.96.
Also, we should mention that WSM has a PEG ratio of 3.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Home Furnishings industry held an average PEG ratio of 2.12.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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