Williams-Sonoma (WSM) closed at $223.34 in the latest trading session, marking a -2.22% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.19%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the seller of cookware and home furnishings had gained 0.66% in the past month. In that same time, the Retail-Wholesale sector gained 2.41%, while the S&P 500 gained 0.55%.
Market participants will be closely following the financial results of Williams-Sonoma in its upcoming release. In that report, analysts expect Williams-Sonoma to post earnings of $2.03 per share. This would mark year-over-year growth of 1.5%. At the same time, our most recent consensus estimate is projecting a revenue of $1.91 billion, reflecting a 4.16% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.39 per share and a revenue of $8.15 billion, indicating changes of +6.22% and +4.4%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Williams-Sonoma. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.08% decrease. Williams-Sonoma is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Williams-Sonoma currently has a Forward P/E ratio of 24.32. This indicates a premium in contrast to its industry's Forward P/E of 22.57.
It's also important to note that WSM currently trades at a PEG ratio of 2.5. 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 Retail - Home Furnishings industry had an average PEG ratio of 1.93 as trading concluded yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 31% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Williams-Sonoma, Inc. (WSM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).