Lagging In Post-Market Activity: Williams-Sonoma (WSM)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Williams-Sonoma as such a stock due to the following factors:
- WSM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $60.5 million.
- WSM is down 4.8% today from today's close.
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More details on WSM:
Williams-Sonoma Inc. operates as a multi-channel specialty retailer of home products. The company operates in two segments, Direct-to-Customer and Retail. The stock currently has a dividend yield of 1.6%. WSM has a PE ratio of 27.3. Currently there are 7 analysts that rate Williams-Sonoma a buy, no analysts rate it a sell, and 14 rate it a hold.
The average volume for Williams-Sonoma has been 660,300 shares per day over the past 30 days. Williams-Sonoma has a market cap of $7.7 billion and is part of the services sector and retail industry. The stock has a beta of 0.79 and a short float of 3.6% with 4.23 days to cover. Shares are up 10.8% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Williams-Sonoma as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, good cash flow from operations and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.3%. Since the same quarter one year prior, revenues slightly increased by 8.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 38.35% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WSM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- WILLIAMS-SONOMA INC has improved earnings per share by 17.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WILLIAMS-SONOMA INC increased its bottom line by earning $2.85 versus $2.56 in the prior year. This year, the market expects an improvement in earnings ($3.20 versus $2.85).
- Net operating cash flow has increased to $111.58 million or 31.87% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 7.87%.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income increased by 14.4% when compared to the same quarter one year prior, going from $56.72 million to $64.91 million.
- You can view the full Williams-Sonoma Ratings Report.
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