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Williams-Sonoma (WSM) Surpasses Market Returns: Some Facts Worth Knowing

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Williams-Sonoma (WSM - Free Report) ended the recent trading session at $146.12, demonstrating a +1.23% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.77%. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.87%.

Heading into today, shares of the seller of cookware and home furnishings had lost 0.11% over the past month, lagging the Retail-Wholesale sector's gain of 5.56% and the S&P 500's gain of 4.87% in that time.

The investment community will be closely monitoring the performance of Williams-Sonoma in its forthcoming earnings report. In that report, analysts expect Williams-Sonoma to post earnings of $1.76 per share. This would mark a year-over-year decline of 3.83%. In the meantime, our current consensus estimate forecasts the revenue to be $1.78 billion, indicating a 3.86% decline compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.99 per share and a revenue of $7.54 billion, indicating changes of +7.54% and -2.7%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Williams-Sonoma. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 shifted 0.34% downward. Williams-Sonoma is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Williams-Sonoma is holding a Forward P/E ratio of 18.08. This valuation marks a discount compared to its industry's average Forward P/E of 19.06.

One should further note that WSM currently holds a PEG ratio of 2.84. 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 2.16 based on yesterday's closing prices.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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