Williams-Sonoma (WSM) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Williams-Sonoma (WSM) closed at $214.70, marking a +1.45% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.92% for the day. Elsewhere, the Dow saw an upswing of 0.31%, while the tech-heavy Nasdaq appreciated by 2.03%.

Shares of the seller of cookware and home furnishings witnessed a gain of 13.47% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 4.85% and the S&P 500's gain of 0.81%.

Market participants will be closely following the financial results of Williams-Sonoma in its upcoming release. 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%. In the meantime, our current consensus estimate forecasts the revenue to be $2.32 billion, indicating a 1.97% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.33 per share and a revenue of $7.57 billion, representing changes of +12.11% and -2.29%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Williams-Sonoma. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, the Zacks Consensus EPS estimate has moved 0.51% higher. Currently, Williams-Sonoma is carrying a Zacks Rank of #2 (Buy).

In the context of valuation, Williams-Sonoma is at present trading with a Forward P/E ratio of 25.41. This represents a premium compared to its industry's average Forward P/E of 21.68.

It's also important to note that WSM currently trades at a PEG ratio of 3.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 36% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.