The latest trading session saw Williams-Sonoma (WSM) ending at $134.83, denoting a -0.28% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 1.23%. Meanwhile, the Dow experienced a rise of 1.02%, and the technology-dominated Nasdaq saw an increase of 1.43%.
Coming into today, shares of the seller of cookware and home furnishings had lost 9.63% in the past month. In that same time, the Retail-Wholesale sector gained 0.58%, while the S&P 500 lost 0.54%.
Analysts and investors alike will be keeping a close eye on the performance of Williams-Sonoma in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.76, indicating a 3.83% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.78 billion, reflecting a 4.17% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.99 per share and revenue of $7.53 billion, which would represent changes of +7.54% and -2.78%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Williams-Sonoma. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Williams-Sonoma currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Williams-Sonoma is presently trading at a Forward P/E ratio of 16.93. For comparison, its industry has an average Forward P/E of 19.43, which means Williams-Sonoma is trading at a discount to the group.
Meanwhile, WSM's PEG ratio is currently 2.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Home Furnishings industry currently had an average PEG ratio of 2.08 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 220, this industry ranks in the bottom 13% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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