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Williams-Sonoma (WSM) Outperforms Broader Market: What You Need to Know

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In the latest market close, Williams-Sonoma (WSM - Free Report) reached $212.11, with a +1.09% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.61%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.28%.

Shares of the seller of cookware and home furnishings have appreciated by 11.77% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.32% and the S&P 500's gain of 2.08%.

The investment community will be closely monitoring the performance of Williams-Sonoma in its forthcoming earnings report. In that report, analysts expect Williams-Sonoma to post earnings of $2.87 per share. This would mark year-over-year growth of 5.51%. Simultaneously, our latest consensus estimate expects the revenue to be $2.32 billion, showing a 1.96% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.33 per share and a revenue of $7.57 billion, signifying shifts of +12.11% and -2.29%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Williams-Sonoma. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.46% rise in the Zacks Consensus EPS estimate. Williams-Sonoma currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Williams-Sonoma is currently trading at a Forward P/E ratio of 25.2. This indicates a premium in contrast to its industry's Forward P/E of 21.77.

One should further note that WSM currently holds a PEG ratio of 3.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Home Furnishings industry had an average PEG ratio of 2.22.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 29% of over 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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