The latest trading session saw Williams-Sonoma (WSM) ending at $154.47, denoting a +0.7% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.15% for the day. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the seller of cookware and home furnishings had lost 3.44% in the past month. In that same time, the Retail-Wholesale sector gained 0.27%, while the S&P 500 lost 0.21%.
Market participants will be closely following the financial results of Williams-Sonoma in its upcoming release. The company's earnings per share (EPS) are projected to be $1.75, reflecting a 14.22% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.67 billion, up 0.33% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $8.49 per share and a revenue of $7.69 billion, demonstrating changes of -3.41% and -0.29%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Williams-Sonoma. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.37% upward. Williams-Sonoma is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Williams-Sonoma currently has a Forward P/E ratio of 18.08. This valuation marks a discount compared to its industry's average Forward P/E of 18.23.
Meanwhile, WSM's PEG ratio is currently 2.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Retail - Home Furnishings industry stood at 2.25 at the close of the market yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 209, positioning it in the bottom 16% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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