Williams-Sonoma (WSM) closed at $217.57 in the latest trading session, marking a -1.4% move from the prior day. This move lagged the S&P 500's daily gain of 0.47%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.9%.
Shares of the seller of cookware and home furnishings have appreciated by 10.87% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 1.03%, and the S&P 500's loss of 0.16%.
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 $2.88, showcasing a 12.2% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.4 billion, indicating a 2.49% downward movement from the same quarter last year.
WSM's full-year Zacks Consensus Estimates are calling for earnings of $8.69 per share and revenue of $7.86 billion. These results would represent year-over-year changes of -1.14% and +1.91%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Williams-Sonoma. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Williams-Sonoma is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Williams-Sonoma is at present trading with a Forward P/E ratio of 24.27. This valuation marks a premium compared to its industry average Forward P/E of 21.42.
Meanwhile, WSM's PEG ratio is currently 3.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Home Furnishings was holding an average PEG ratio of 2.11 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 14% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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