Williams-Sonoma (WSM) Laps the Stock Market: Here's Why

Core Insights - Williams-Sonoma's stock closed at $198.96, reflecting a 2.56% increase, outperforming the S&P 500's gain of 0.37% [1] - The company is expected to report an EPS of $1.85, a decrease of 5.61% year-over-year, with revenue projected at $1.85 billion, an increase of 2.92% [2] - For the full year, earnings are projected at $8.54 per share and revenue at $7.82 billion, indicating a decline of 2.84% in earnings and an increase of 3.85% in revenue compared to the previous year [3] Analyst Estimates - Recent adjustments to analyst estimates for Williams-Sonoma reflect changing business dynamics, with upward revisions indicating positive sentiment towards the company's profitability [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Williams-Sonoma at 3 (Hold), with a recent 0.14% decrease in the EPS estimate [5][6] Valuation Metrics - Williams-Sonoma has a Forward P/E ratio of 22.71, slightly above the industry average of 22.68, and a PEG ratio of 3.13, compared to the industry average PEG ratio of 2.02 [7] Industry Context - The Retail - Home Furnishings industry, part of the Retail-Wholesale sector, ranks 174 in the Zacks Industry Rank, placing it in the bottom 30% of over 250 industries [8]