Williams-Sonoma (WSM) closed the most recent trading day at $203.78, moving +1.63% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.49%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.65%.
The seller of cookware and home furnishings's stock has climbed by 18.5% in the past month, exceeding the Retail-Wholesale sector's loss of 1.34% and the S&P 500's gain of 0.96%.
The upcoming earnings release of Williams-Sonoma will be of great interest to investors. The company is expected to report EPS of $1.78, up 2.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.81 billion, up 1.46% from the prior-year quarter.
WSM's full-year Zacks Consensus Estimates are calling for earnings of $8.53 per share and revenue of $7.72 billion. These results would represent year-over-year changes of -2.96% and +0.14%, respectively.
Investors might also notice recent changes to analyst estimates for Williams-Sonoma. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, the Zacks Consensus EPS estimate has remained steady. Williams-Sonoma presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Williams-Sonoma currently has a Forward P/E ratio of 23.5. This expresses a premium compared to the average Forward P/E of 20.51 of its industry.
It's also important to note that WSM currently trades at a PEG ratio of 3.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Retail – Home Furnishings industry was having an average PEG ratio of 2.73.
The Retail – Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 175, this industry ranks in the bottom 30% of all industries, numbering over 250.
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.
