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Here's Why Williams-Sonoma (WSM) Gained But Lagged the Market Today

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Williams-Sonoma (WSM - Free Report) closed the latest trading day at $129.84, indicating a +0.03% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.1%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 0.06%.

The seller of cookware and home furnishings's stock has dropped by 10.08% in the past month, falling short of the Retail-Wholesale sector's gain of 5.33% and the S&P 500's gain of 4.37%.

Analysts and investors alike will be keeping a close eye on the performance of Williams-Sonoma in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.76, signifying a 3.83% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.78 billion, indicating a 4.17% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.99 per share and a revenue of $7.53 billion, representing changes of +7.54% and -2.78%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Williams-Sonoma. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Williams-Sonoma holds a Zacks Rank of #3 (Hold).

Digging into valuation, Williams-Sonoma currently has a Forward P/E ratio of 16.25. This indicates a discount in contrast to its industry's Forward P/E of 20.2.

We can additionally observe that WSM currently boasts a PEG ratio of 2.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Home Furnishings was holding an average PEG ratio of 2.34 at yesterday's closing price.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 221, placing it within the bottom 13% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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