Williams-Sonoma (WSM) closed the most recent trading day at $213.96, moving +1.01% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.56%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, added 0.78%.
The seller of cookware and home furnishings's stock has climbed by 2.88% in the past month, exceeding the Retail-Wholesale sector's loss of 5.72% and the S&P 500's loss of 1.27%.
The investment community will be closely monitoring the performance of Williams-Sonoma in its forthcoming earnings report. On that day, Williams-Sonoma is projected to report earnings of $2.89 per share, which would represent a year-over-year decline of 11.89%. Our most recent consensus estimate is calling for quarterly revenue of $2.4 billion, down 2.49% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.7 per share and revenue of $7.86 billion, indicating changes of -1.02% and +1.91%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Williams-Sonoma. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. As of now, Williams-Sonoma holds a Zacks Rank of #2 (Buy).
In terms of valuation, Williams-Sonoma is presently being traded at a Forward P/E ratio of 23.27. For comparison, its industry has an average Forward P/E of 21.57, which means Williams-Sonoma is trading at a premium to the group.
It's also important to note that WSM currently trades at a PEG ratio of 3.17. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Home Furnishings industry held an average PEG ratio of 2.1.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 168, positioning it in the bottom 32% 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 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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