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Williams-Sonoma (WSM) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest trading session, Williams-Sonoma (WSM - Free Report) closed at $206.40, marking a -1.41% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.03%. On the other hand, the Dow registered a gain of 0.28%, and the technology-centric Nasdaq decreased by 0.36%.

The the stock of seller of cookware and home furnishings has risen by 7.22% in the past month, lagging the Retail-Wholesale sector's gain of 9.07% and overreaching the S&P 500's gain of 4.19%.

The upcoming earnings release of Williams-Sonoma will be of great interest to investors. In that report, analysts expect Williams-Sonoma to post earnings of $2.87 per share. This would mark year-over-year growth of 5.51%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.32 billion, indicating a 1.97% increase compared to the same quarter of the previous year.

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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. As of now, Williams-Sonoma holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Williams-Sonoma is currently exchanging hands at a Forward P/E ratio of 24.62. This valuation marks a premium compared to its industry's average Forward P/E of 21.39.

We can additionally observe that WSM currently boasts a PEG ratio of 2.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 35% echelons 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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