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Williams-Sonoma (WSM) Stock Dips While Market Gains: Key Facts

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Williams-Sonoma (WSM - Free Report) closed the most recent trading day at $191.98, moving -4.65% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.26% for the day. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.48%.

Shares of the seller of cookware and home furnishings have appreciated by 6.99% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 0.76%, and the S&P 500's gain of 2.87%.

The investment community will be closely monitoring the performance of Williams-Sonoma in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.87, marking a 4.59% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.85 billion, indicating a 2.84% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.55 per share and a revenue of $7.82 billion, signifying shifts of -2.73% and +1.38%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Williams-Sonoma. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 0.16% higher. As of now, Williams-Sonoma holds a Zacks Rank of #3 (Hold).

In the context of valuation, Williams-Sonoma is at present trading with a Forward P/E ratio of 23.54. This signifies no noticeable deviation in comparison to the average Forward P/E of 23.54 for its industry.

It's also important to note that WSM currently trades at a PEG ratio of 3.25. 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 2.82 based on yesterday's closing prices.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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