Williams-Sonoma (WSM) ended the recent trading session at $187.40, demonstrating a -2.42% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.49%. Elsewhere, the Dow saw a downswing of 0.05%, while the tech-heavy Nasdaq depreciated by 0.9%.
Coming into today, shares of the seller of cookware and home furnishings had gained 8.6% in the past month. In that same time, the Retail-Wholesale sector gained 13.56%, while the S&P 500 gained 12.8%.
Investors will be eagerly watching for the performance of Williams-Sonoma in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.79, signifying a 3.24% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.8 billion, up 4.3% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.19 per share and revenue of $8.14 billion. These totals would mark changes of +3.96% and +4.33%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Williams-Sonoma. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.36% higher. Williams-Sonoma is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Williams-Sonoma has a Forward P/E ratio of 20.9 right now. Its industry sports an average Forward P/E of 21.06, so one might conclude that Williams-Sonoma is trading at a discount comparatively.
We can also see that WSM currently has a PEG ratio of 2.43. 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 1.86 at the close of the market yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 197, placing it within the bottom 20% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Williams-Sonoma, Inc. (WSM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).