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Williams-Sonoma (WSM) Gains As Market Dips: What You Should Know

In the latest trading session, Williams-Sonoma (WSM) closed at $155.74, marking a +0.8% move from the previous day. This change outpaced the S&P 500's 0.07% loss on the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.09%.

Coming into today, shares of the seller of cookware and home furnishings had gained 18.65% in the past month. In that same time, the Retail-Wholesale sector gained 9.45%, while the S&P 500 gained 8.06%.

Wall Street will be looking for positivity from Williams-Sonoma as it approaches its next earnings report date. In that report, analysts expect Williams-Sonoma to post earnings of $3.47 per share. This would mark year-over-year growth of 7.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.03 billion, up 4.07% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.08 per share and revenue of $8.63 billion, which would represent changes of +8.28% and +4.69%, respectively, from the prior year.

Any recent changes to analyst estimates for Williams-Sonoma should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.81% lower within the past month. Williams-Sonoma is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that Williams-Sonoma has a Forward P/E ratio of 9.61 right now. For comparison, its industry has an average Forward P/E of 10.27, which means Williams-Sonoma is trading at a discount to the group.

Also, we should mention that WSM has a PEG ratio of 1.69. 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. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 1.22 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 233, putting it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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