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Williams-Sonoma (WSM) Soars 13.7%: Is Further Upside Left in the Stock?

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Williams-Sonoma (WSM - Free Report) shares rallied 13.7% in the last trading session to close at $158.25. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.4% loss over the past four weeks.

Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, Williams-Sonoma shares soared, reflecting renewed investor optimism.

This seller of cookware and home furnishings is expected to post quarterly earnings of $1.76 per share in its upcoming report, which represents a year-over-year change of -13.7%. Revenues are expected to be $1.67 billion, up 0.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Williams-Sonoma, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on WSM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Williams-Sonoma belongs to the Zacks Retail - Home Furnishings industry. Another stock from the same industry, Home Depot (HD - Free Report) , closed the last trading session 6% higher at $355.39. Over the past month, HD has returned -8.9%.

Home Depot's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3.59. Compared to the company's year-ago EPS, this represents a change of -1.1%. Home Depot currently boasts a Zacks Rank of #3 (Hold).


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