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Williams-Sonoma (WSM) closed the most recent trading day at $194.67, moving -0.26% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.5% for the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 1.21%.
Shares of the seller of cookware and home furnishings have depreciated by 8.62% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.04% and the S&P 500's loss of 0.47%.
The upcoming earnings release of Williams-Sonoma will be of great interest to investors. The company is predicted to post an EPS of $2.88, indicating a 5.88% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.32 billion, up 1.93% from the prior-year quarter.
Investors should also note any recent changes 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 company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.24% upward. At present, Williams-Sonoma boasts a Zacks Rank of #3 (Hold).
Investors should also note Williams-Sonoma's current valuation metrics, including its Forward P/E ratio of 22.93. This signifies a premium in comparison to the average Forward P/E of 19.08 for its industry.
It is also worth noting that WSM currently has a PEG ratio of 2.69. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 139, putting it in the bottom 45% 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.