In the latest trading session, Williams-Sonoma (WSM) closed at $196.34, marking a -1.62% move from the previous day. This change lagged the S&P 500's daily gain of 0.78%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 1.29%.
Coming into today, shares of the seller of cookware and home furnishings had lost 7.61% in the past month. In that same time, the Retail-Wholesale sector lost 6.17%, while the S&P 500 lost 1.33%.
The investment community will be closely monitoring the performance of Williams-Sonoma in its forthcoming earnings report. The company's upcoming EPS is projected at $2.89, signifying a 11.89% drop compared to the same quarter of the previous 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.7 per share and a revenue of $7.86 billion, representing changes of -1.02% and +1.91%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Williams-Sonoma. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has moved 0.1% higher. 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 21.93. This expresses a premium compared to the average Forward P/E of 20.17 of its industry.
Meanwhile, WSM's PEG ratio is currently 2.99. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Home Furnishings was holding an average PEG ratio of 1.84 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 193, placing it within the bottom 22% of over 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.
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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