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Why Williams-Sonoma (WSM) Outpaced the Stock Market Today

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Williams-Sonoma (WSM - Free Report) ended the recent trading session at $208.19, demonstrating a +1.81% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.72%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.35%.

The seller of cookware and home furnishings's stock has climbed by 2.08% in the past month, falling short of the Retail-Wholesale sector's gain of 6.17% and outpacing the S&P 500's gain of 1.02%.

The upcoming earnings release of Williams-Sonoma will be of great interest to investors. The company's upcoming EPS is projected at $2.87, signifying a 5.51% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.32 billion, indicating a 1.97% upward movement from the same quarter last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Williams-Sonoma. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. At present, Williams-Sonoma boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Williams-Sonoma currently has a Forward P/E ratio of 24.05. For comparison, its industry has an average Forward P/E of 21.84, which means Williams-Sonoma is trading at a premium to the group.

We can additionally observe that WSM currently boasts a PEG ratio of 2.82. 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 2.09 as of yesterday's close.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% of all 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.

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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