Williams-Sonoma (WSM) ended the recent trading session at $193.52, demonstrating a +2.32% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 1.23%.
Coming into today, shares of the seller of cookware and home furnishings had gained 5.08% in the past month. In that same time, the Retail-Wholesale sector gained 0.87%, while the S&P 500 gained 0.63%.
Investors will be eagerly watching for the performance of Williams-Sonoma in its upcoming earnings disclosure. In that report, analysts expect Williams-Sonoma to post earnings of $1.79 per share. This would mark a year-over-year decline of 3.24%. Alongside, our most recent consensus estimate is anticipating revenue of $1.8 billion, indicating a 4.3% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.19 per share and a revenue of $8.14 billion, representing changes of +3.96% and +4.33%, respectively, from the prior year.
Any recent changes to analyst estimates for Williams-Sonoma should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.95% higher. Williams-Sonoma currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Williams-Sonoma is at present trading with a Forward P/E ratio of 20.58. This signifies a premium in comparison to the average Forward P/E of 20.39 for its industry.
One should further note that WSM currently holds a PEG ratio of 2.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 1.5 based on yesterday's closing prices.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 37% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Williams-Sonoma, Inc. (WSM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).