Williams-Sonoma (WSM) closed at $185.36 in the latest trading session, marking a -1.14% move from the prior day. This change lagged the S&P 500’s daily gain of 0.53%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.52%.
The stock of seller of cookware and home furnishings has fallen by 6.07% in the past month, lagging the Retail-Wholesale sector’s loss of 5.41% and the S&P 500’s gain of 0.71%.
The upcoming earnings release of Williams-Sonoma will be of great interest to investors. The company is predicted to post an EPS of $1.85, indicating a 5.61% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.85 billion, reflecting a 2.51% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.54 per share and revenue of $7.82 billion, indicating changes of -2.84% and +1.38%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Williams-Sonoma. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there’s been a 0.33% fall in the Zacks Consensus EPS estimate. Williams-Sonoma is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Williams-Sonoma is presently trading at a Forward P/E ratio of 21.95. This denotes no noticeable deviation relative to the industry average Forward P/E of 21.95.
It’s also important to note that WSM currently trades at a PEG ratio of 3.03. 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 2.64.
The Retail – Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 38% of over 250 industries.
