In the latest close session, Williams-Sonoma (WSM) was up +1.03% at $211.38. The stock's change was more than the S&P 500's daily loss of 0.54%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 1.18%.
The seller of cookware and home furnishings's shares have seen an increase of 1.7% over the last month, surpassing the Retail-Wholesale sector's loss of 5.23% and the S&P 500's gain of 0.58%.
The upcoming earnings release of Williams-Sonoma will be of great interest to investors. The company is expected to report EPS of $2.89, down 11.89% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.4 billion, indicating a 2.49% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.7 per share and revenue of $7.86 billion, which would represent changes of -1.02% and +1.91%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Williams-Sonoma. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, 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 has moved 0.1% higher within the past month. 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 22.99. This signifies a premium in comparison to the average Forward P/E of 20.17 for its industry.
Investors should also note that WSM has a PEG ratio of 3.13 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. WSM's industry had an average PEG ratio of 1.89 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 150, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Williams-Sonoma, Inc. (WSM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
