Core Viewpoint - The announcement of trade tariffs by President Trump on trading partners like Canada and Mexico presents a significant investment opportunity, particularly in the lumber industry, as it allows investors to hedge against rising costs and tariff uncertainties [1][2]. Lumber Industry Focus - The lumber industry is highlighted as a potential buy opportunity due to its ability to hedge views on upcoming tariffs, with consumer discretionary sectors facing rising costs and declining consumer spending [2]. - The U.S. imports approximately 30% of its lumber consumption from Canada, and the imposition of tariffs may lead to increased domestic production to offset cost increases [3]. Investment Recommendations - Investors are advised to avoid the consumer branch of the lumber industry, specifically companies like Williams-Sonoma, while considering shares of Weyerhaeuser for potential upside [3][5]. - Weyerhaeuser is projected to have a 12-month stock price forecast of $35.00, indicating a 14.05% upside, supported by significant institutional buying of $1.6 billion worth of stock [9]. Market Dynamics - The SDPR S&P Homebuilders ETF has seen a decline of 15.5% over the past quarter, reflecting bearish sentiment in the housing market due to rising lumber prices and potential construction activity stalls [4]. - The forecast for Weyerhaeuser's earnings per share (EPS) is expected to rise from $0.11 to $0.25 in the third quarter of 2025, which could positively influence stock prices and valuations [10]. Company Performance - Williams-Sonoma has experienced a decline of 10.6% in stock price over the past month, with concerns over increased inventory costs and sluggish consumer activity leading to potential write-offs and lower EPS [6][8]. - The current P/E ratio for Weyerhaeuser stands at 56.3x, significantly higher than the construction sector's average of 16.2x, indicating market confidence in its growth potential despite being perceived as expensive [11].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Williams-Sonoma, driven by higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $2.91 per share, reflecting a +7% year-over-year change, and revenues of $2.34 billion, up 2.5% from the previous year [3]. - The consensus EPS estimate has been revised 0.48% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate is higher than the Zacks Consensus Estimate, leading to an Earnings ESP of +3.02%, indicating a likely earnings beat [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which historically results in a positive surprise nearly 70% of the time [8]. Historical Performance - Williams-Sonoma has consistently beaten consensus EPS estimates, achieving this in the last four quarters, including a +11.36% surprise in the most recent quarter [12][13]. Conclusion - While the potential for an earnings beat exists, other factors may influence stock movement, making it essential to consider the Earnings ESP and Zacks Rank before the earnings release [14][15][16].

Core Viewpoint - Williams-Sonoma (WSM) is well-positioned to continue its earnings-beat streak in upcoming reports, supported by a strong history of exceeding earnings estimates and a positive earnings outlook [1][3]. Earnings Performance - For the most recent quarter, Williams-Sonoma reported earnings of $1.96 per share, surpassing the expected $1.76 per share, resulting in a surprise of 11.36% [2]. - In the previous quarter, the company reported $1.74 per share against an expectation of $1.64 per share, achieving a surprise of 6.10% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Williams-Sonoma, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [3][6]. - The current Earnings ESP for Williams-Sonoma is +1.36%, reflecting increased analyst optimism regarding its near-term earnings potential [6]. Zacks Rank and Success Rate - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high probability of another earnings beat, with historical data indicating that such combinations lead to positive surprises nearly 70% of the time [4][6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [5].

Company Performance - Williams-Sonoma (WSM) closed at $209.49, reflecting a +0.62% change from the previous session, outperforming the S&P 500's daily gain of 0.39% [1] - Over the past month, WSM shares gained 6.56%, lagging behind the Retail-Wholesale sector's gain of 8.29% but outperforming the S&P 500's gain of 1.7% [2] Upcoming Earnings - Analysts expect Williams-Sonoma to report earnings of $2.87 per share, indicating a year-over-year growth of 5.51% [3] - The consensus estimate for revenue is $2.32 billion, up 1.97% from the prior-year quarter [3] Analyst Estimates and Valuation - Recent adjustments to analyst estimates for Williams-Sonoma reflect shifting business dynamics, with positive revisions indicating a favorable outlook on the company's health and profitability [4] - The Zacks Rank system currently rates Williams-Sonoma at 3 (Hold), with a 0.01% increase in the consensus EPS estimate over the last 30 days [6] - Williams-Sonoma has a Forward P/E ratio of 24.49, which is a premium compared to the industry's average Forward P/E of 21.5, and a PEG ratio of 2.87 compared to the industry average of 2.06 [7] Industry Context - The Retail - Home Furnishings industry is part of the Retail-Wholesale sector and holds a Zacks Industry Rank of 86, placing it in the top 35% of over 250 industries [8]

Group 1 - Williams-Sonoma's stock closed at $208.19, with a +1.81% change from the previous day, outperforming the S&P 500's gain of 0.72% [1] - The stock has increased by 2.08% over the past month, underperforming the Retail-Wholesale sector's gain of 6.17% but outperforming the S&P 500's gain of 1.02% [1] Group 2 - The upcoming earnings release is projected to show an EPS of $2.87, reflecting a 5.51% increase year-over-year, with anticipated revenue of $2.32 billion, a 1.97% increase from the same quarter last year [2] - Recent shifts in analyst projections are important, as upward revisions indicate positive sentiment regarding the company's business operations and profit generation [3] Group 3 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 stocks delivering an average annual return of +25% since 1988; currently, Williams-Sonoma holds a Zacks Rank of 3 (Hold) [5] - The Zacks Consensus EPS estimate has seen a slight increase of 0.01% over the last 30 days [5] Group 4 - Williams-Sonoma has a Forward P/E ratio of 24.05, which is higher than the industry average of 21.84, indicating it is trading at a premium [6] - The company has a PEG ratio of 2.82, compared to the industry average of 2.09, suggesting a higher valuation relative to expected earnings growth [7] Group 5 - The Retail - Home Furnishings industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 90, placing it in the top 36% of over 250 industries [7][8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify stocks with momentum by focusing on key metrics [2] Group 2: Williams-Sonoma (WSM) Performance - Williams-Sonoma currently has a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - Over the past week, WSM shares increased by 2.98%, while the Zacks Retail - Home Furnishings industry rose by 4.48% [6] - In the last month, WSM's price changed by 8.74%, outperforming the industry's 3.67% [6] - Over the past quarter, WSM shares have risen by 53.08%, and over the last year, they are up 93.55%, significantly outperforming the S&P 500's gains of 2.54% and 25.42% respectively [7] Group 3: Trading Volume and Earnings Outlook - WSM's average 20-day trading volume is 1,082,415 shares, which is a bullish indicator when combined with rising stock prices [8] - Recent earnings estimate revisions for WSM show one upward revision for the current fiscal year, increasing the consensus estimate from $8.18 to $8.33 [10] - For the next fiscal year, two estimates have moved upwards with no downward revisions, indicating positive earnings momentum [10] Group 4: Conclusion - Considering the strong performance metrics and positive earnings outlook, WSM is positioned as a solid momentum pick with a 2 (Buy) rating and a Momentum Score of B [12]

Core Viewpoint - Williams-Sonoma (WSM) has shown strong stock performance recently, with an 8.7% return over the past month, significantly outperforming the S&P 500 composite's 1.2% change and the Retail - Home Furnishings industry's 3.7% gain [2] Earnings Estimate Revisions - For the current quarter, Williams-Sonoma is expected to report earnings of $2.87 per share, reflecting a 5.5% increase year-over-year, with a slight upward revision of 0.1% in the consensus estimate over the last 30 days [5] - The consensus earnings estimate for the current fiscal year stands at $8.33, indicating a 12.1% increase from the previous year, with a 0.5% upward revision in the last month [5] - For the next fiscal year, the consensus estimate is $8.50, showing a 2.1% increase from the prior year, with no changes in the estimate over the past month [6] - Williams-Sonoma holds a Zacks Rank 2 (Buy), indicating a favorable outlook based on recent changes in earnings estimates and other related factors [7] Projected Revenue Growth - The consensus sales estimate for the current quarter is $2.32 billion, representing a 2% year-over-year increase [9] - For the current fiscal year, the revenue estimates are $7.57 billion and $7.62 billion, indicating changes of -2.3% and +0.7%, respectively [9] Last Reported Results and Surprise History - In the last reported quarter, Williams-Sonoma achieved revenues of $1.8 billion, a decrease of 2.9% year-over-year, while EPS was $1.96, up from $1.83 a year ago [11] - The company exceeded the Zacks Consensus Estimate for revenues by 1.47% and for EPS by 11.36%, beating consensus EPS estimates in the last four quarters and revenue estimates three times during this period [11] Valuation - Williams-Sonoma is graded C in the Zacks Value Style Score, indicating that it is trading at par with its peers [15]

Core Viewpoint - Williams-Sonoma is showing strong stock performance and is expected to report positive earnings growth in the upcoming earnings release, indicating investor optimism in the company's future profitability [2][3]. Group 1: Stock Performance - Williams-Sonoma closed at $199.13, with a daily increase of 0.3%, outperforming the S&P 500, which fell by 0.21% [1] - Over the past month, shares have appreciated by 6.7%, while the Retail-Wholesale sector and S&P 500 experienced losses of 2.84% and 1.56%, respectively [1]. Group 2: Earnings Estimates - The upcoming earnings release is anticipated to show an EPS of $2.87, reflecting a growth of 5.51% year-over-year [2]. - Full-year Zacks Consensus Estimates predict earnings of $8.29 per share and revenue of $7.57 billion, representing year-over-year changes of +11.57% and -2.29%, respectively [3]. Group 3: Analyst Sentiment - Recent changes in analyst estimates for Williams-Sonoma indicate a positive outlook for the company's business and profitability [3]. - The Zacks Rank system currently rates Williams-Sonoma as 2 (Buy), suggesting strong potential for stock performance [5]. Group 4: Valuation Metrics - Williams-Sonoma has a Forward P/E ratio of 23.95, which is higher than the industry average of 20.85 [5]. - The company’s PEG ratio stands at 3.02, compared to the industry average of 2.18, indicating a premium valuation relative to expected earnings growth [6]. Group 5: Industry Context - The Retail - Home Furnishings industry is ranked 86 in the Zacks Industry Rank, placing it in the top 35% of over 250 industries [7]. - Strong industry rankings suggest that companies within the top 50% outperform those in the bottom half by a factor of 2 to 1 [7].

Core Insights - Williams-Sonoma, Inc. (WSM) has partnered with Kravet to create an exclusive collection for Pottery Barn, expanding access to Kravet's signature prints and patterns [1][2] - The collaboration allows Pottery Barn to leverage Kravet's textile expertise, resulting in a collection that includes various home decor items [2][3] Product Portfolio Enhancement - The partnership enhances WSM's product offerings, allowing the company to cater to diverse market demands and stimulate growth despite macroeconomic challenges [4] - WSM's focus on collaborations and product innovations is aimed at reaching new audiences while retaining existing customers, with recent partnerships including notable figures in fashion and culinary arts [5][6] Market Performance - WSM's shares have increased by 96.5% over the past year, significantly outperforming the Zacks Retail - Home Furnishings industry's growth of 10% [8] - The company's success is attributed to its e-commerce business, B2B initiatives, and expansion plans, positioning it well for future growth [8]

Williams-Sonoma (WSM) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this seller of cookware and home furnishings have returned +4.6%, compared to the Zacks S&P 500 composite's -2.8% change. During this period, the Zacks Retail - Home Furnishings industry, which Williams-Sonoma falls in, has lost 10.1%. The key question now is: What could be the stock's ...