Williams-Sonoma (WSM) closed the most recent trading day at $173.73, moving +2.67% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.61% for the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.95%.
Coming into today, shares of the seller of cookware and home furnishings had gained 7.03% in the past month. In that same time, the Retail-Wholesale sector gained 0.8%, while the S&P 500 gained 3.85%.
Investors will be eagerly watching for the performance of Williams-Sonoma in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.78, marking a 2.3% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.81 billion, up 1.46% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.53 per share and a revenue of $7.72 billion, indicating changes of -2.96% and +0.14%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Williams-Sonoma. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Williams-Sonoma is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Williams-Sonoma has a Forward P/E ratio of 19.83 right now. This represents no noticeable deviation compared to its industry average Forward P/E of 19.83.
It is also worth noting that WSM currently has a PEG ratio of 2.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Home Furnishings was holding an average PEG ratio of 2.33 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 90, putting it in the top 37% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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