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Williams-Sonoma (WSM) Flat As Market Sinks: What You Should Know

Williams-Sonoma (WSM) closed at $142.58 in the latest trading session, marking no change from the prior day. This move was narrower than the S&P 500's daily loss of 1.89%. At the same time, the Dow lost 1.3%, and the tech-heavy Nasdaq lost 0.17%.

Heading into today, shares of the seller of cookware and home furnishings had lost 15.61% over the past month, lagging the Retail-Wholesale sector's loss of 6.12% and the S&P 500's loss of 1.79% in that time.

Williams-Sonoma will be looking to display strength as it nears its next earnings release. On that day, Williams-Sonoma is projected to report earnings of $4.82 per share, which would represent year-over-year growth of 22.03%. Our most recent consensus estimate is calling for quarterly revenue of $2.57 billion, up 11.89% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $14.26 per share and revenue of $8.33 billion, which would represent changes of +57.74% and +22.78%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Williams-Sonoma. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.39% higher. Williams-Sonoma is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Williams-Sonoma is holding a Forward P/E ratio of 10. Its industry sports an average Forward P/E of 11.96, so we one might conclude that Williams-Sonoma is trading at a discount comparatively.

Investors should also note that WSM has a PEG ratio of 1.1 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Home Furnishings industry currently had an average PEG ratio of 0.82 as of yesterday's close.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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