Williams-Sonoma (WSM) ended the recent trading session at $223.83, demonstrating a -1.63% change from the preceding day's closing price. This change lagged the S&P 500's 0.72% gain on the day. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.12%.
Prior to today's trading, shares of the seller of cookware and home furnishings had gained 11% outpaced the Retail-Wholesale sector's loss of 0.64% and the S&P 500's loss of 0.9%.
The investment community will be paying close attention to the earnings performance of Williams-Sonoma in its upcoming release. On that day, Williams-Sonoma is projected to report earnings of $2.03 per share, which would represent year-over-year growth of 1.5%. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.39 per share and revenue of $8.15 billion, indicating changes of +6.22% and +4.4%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Williams-Sonoma. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 past month, there's been a 0.61% rise in the Zacks Consensus EPS estimate. Right now, Williams-Sonoma possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Williams-Sonoma has a Forward P/E ratio of 24.23 right now. This valuation marks a premium compared to its industry average Forward P/E of 23.84.
We can also see that WSM currently has a PEG ratio of 2.49. 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. As of the close of trade yesterday, the Retail - Home Furnishings industry held an average PEG ratio of 1.98.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 209, positioning it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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).