In the latest trading session, Williams-Sonoma (WSM) closed at $241.78, marking a +1.16% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.6%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 0.64%.
The seller of cookware and home furnishings's shares have seen an increase of 6.82% over the last month, surpassing the Retail-Wholesale sector's loss of 1.58% and the S&P 500's gain of 1.34%.
The investment community will be closely monitoring the performance of Williams-Sonoma in its forthcoming earnings report. The company is expected to report EPS of $2.16, up 10.2% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.98 billion, up 5.39% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.51 per share and a revenue of $8.23 billion, signifying shifts of +7.58% and +5.46%, respectively, from the last year.
Any recent changes to analyst estimates for Williams-Sonoma should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.25% increase. Williams-Sonoma is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Williams-Sonoma is currently exchanging hands at a Forward P/E ratio of 25.14. This indicates a premium in contrast to its industry's Forward P/E of 16.57.
Also, we should mention that WSM has a PEG ratio of 2.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Home Furnishings was holding an average PEG ratio of 1.48 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 109, putting it in the top 45% 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.
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).