Williams-Sonoma (WSM) closed the most recent trading day at $207.38, moving +1.72% from the previous trading session. This change outpaced the S&P 500’s 0.42% gain on the day.
Coming into today, shares of the seller of cookware and home furnishings had gained 22.19% in the past month. In that same time, the Retail-Wholesale sector gained 6.5%, while the S&P 500 gained 7.03%.
WSM will be looking to display strength as it nears its next earnings release. On that day, WSM is projected to report earnings of $3.10 per share, which would represent year-over-year growth of 21.09%. Our most recent consensus estimate is calling for quarterly revenue of $1.99 billion, up 12.73% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.57 per share and revenue of $8.1 billion, which would represent changes of +50.11% and +19.45%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for WSM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 1.98% higher within the past month. WSM is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, WSM currently has a Forward P/E ratio of 15.02. For comparison, its industry has an average Forward P/E of 15.02, which means WSM is trading at a no noticeable deviation to the group.
Also, we should mention that WSM has a PEG ratio of 1.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Retail – Home Furnishings industry currently had an average PEG ratio of 1.59 as of yesterday’s close.
The Retail – Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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