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Williams-Sonoma (WSM) Gains As Market Dips: What You Should Know

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Williams-Sonoma (WSM - Free Report) closed the most recent trading day at $132.01, moving +0.08% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the seller of cookware and home furnishings had gained 10.97% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.28% and the S&P 500's gain of 2.02% in that time.

Wall Street will be looking for positivity from Williams-Sonoma as it approaches its next earnings report date. In that report, analysts expect Williams-Sonoma to post earnings of $3.49 per share. This would mark year-over-year growth of 7.72%. Meanwhile, our latest consensus estimate is calling for revenue of $2.03 billion, up 4.44% from the prior-year quarter.

WSM's full-year Zacks Consensus Estimates are calling for earnings of $16.22 per share and revenue of $8.68 billion. These results would represent year-over-year changes of +9.23% and +5.3%, respectively.

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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. Williams-Sonoma is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Williams-Sonoma currently has a Forward P/E ratio of 8.13. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 8.13.

Also, we should mention that WSM has a PEG ratio of 1.43. 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. WSM's industry had an average PEG ratio of 1.02 as of yesterday's close.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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