Williams-Sonoma (WSM) Declines More Than Market: Some Information for Investors

Williams-Sonoma (WSM) closed at $160.31 in the latest trading session, marking a -0.36% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.07%.

The seller of cookware and home furnishings's stock has climbed by 8.79% in the past month, falling short of the Retail-Wholesale sector's gain of 14% and the S&P 500's gain of 13.74%.

Investors will be eagerly watching for the performance of Williams-Sonoma in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.76, marking a 13.73% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.67 billion, indicating a 0.56% increase compared to the same quarter of the previous year.

WSM's full-year Zacks Consensus Estimates are calling for earnings of $8.49 per share and revenue of $7.69 billion. These results would represent year-over-year changes of -3.41% and -0.34%, respectively.

Any recent changes to analyst estimates for Williams-Sonoma should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 moved 0.3% lower. Right now, Williams-Sonoma possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Williams-Sonoma is currently trading at a Forward P/E ratio of 18.95. This denotes no noticeable deviation relative to the industry's average Forward P/E of 18.95.

We can additionally observe that WSM currently boasts a PEG ratio of 2.61. 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. The Retail - Home Furnishings industry had an average PEG ratio of 2.25 as trading concluded yesterday.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 203, this industry ranks in the bottom 18% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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