Williams-Sonoma (WSM) Stock Drops Despite Market Gains: Important Facts to Note

Company Performance - Williams-Sonoma's stock closed at $134.83, reflecting a -0.28% change from the previous day, underperforming the S&P 500's gain of 1.23% [1] - The company has seen a 9.63% decline in share price over the past month, while the Retail-Wholesale sector gained 0.58% and the S&P 500 lost 0.54% during the same period [1] Earnings Estimates - Analysts predict Williams-Sonoma will report an EPS of$ 1.76, indicating a 3.83% decline year-over-year, with a revenue estimate of $1.78 billion, reflecting a 4.17% decrease from the same quarter last year [2] - For the full year, earnings are projected at$ 7.99 per share and revenue at $7.53 billion, representing changes of +7.54% and -2.78% respectively from the prior year [3] Analyst Sentiment - Recent adjustments to analyst estimates for Williams-Sonoma may indicate shifting business dynamics, with positive revisions suggesting optimism about the company's outlook [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Williams-Sonoma at 3 (Hold), with no changes in the EPS estimate over the last 30 days [6] Valuation Metrics - Williams-Sonoma is trading at a Forward P/E ratio of 16.93, which is below the industry average of 19.43, indicating a discount relative to its peers [7] - The company's PEG ratio stands at 2.66, compared to the industry average PEG ratio of 2.08, suggesting a higher valuation relative to projected earnings growth [7] Industry Context - The Retail - Home Furnishings industry, part of the Retail-Wholesale sector, ranks 220 in the Zacks Industry Rank, placing it in the bottom 13% of over 250 industries [8] - Historical data indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]