Williams-Sonoma (WSM) closed at $216.65 in the latest trading session, marking a -2.3% move from the prior day. This move lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 1.55%.
The seller of cookware and home furnishings's stock has dropped by 0.8% in the past month, falling short of the Retail-Wholesale sector's gain of 1.39% and the S&P 500's gain of 4.28%.
The investment community will be closely monitoring the performance of Williams-Sonoma in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.03, marking a 1.5% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.91 billion, indicating a 4.16% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.39 per share and a revenue of $8.15 billion, representing changes of +6.22% and +4.4%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Williams-Sonoma. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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, 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, there's been a 0.57% rise in the Zacks Consensus EPS estimate. Williams-Sonoma presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Williams-Sonoma has a Forward P/E ratio of 23.61 right now. This indicates a premium in contrast to its industry's Forward P/E of 22.87.
Investors should also note that WSM has a PEG ratio of 2.43 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Home Furnishings was holding an average PEG ratio of 1.9 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Report
This article originally published on Zacks Investment Research (zacks.com).