New Lifetime High Reached By 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 or Stephanie Link.
Trade-Ideas LLC identified
(
) as a new lifetime high 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 $55.4 million.
- WSM has traded 19,001 shares today.
- WSM is trading at a new lifetime high.
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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 26.2. Currently there are 7 analysts that rate Williams-Sonoma a buy, no analysts rate it a sell, and 15 rate it a hold.
The average volume for Williams-Sonoma has been 691,600 shares per day over the past 30 days. Williams-Sonoma has a market cap of $7.4 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 4.93 days to cover. Shares are up 6.5% year-to-date as of the close of trading on Wednesday.
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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 largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 14.2%. 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 33.55% 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 9.17%.
- WSM's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.18 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full Williams-Sonoma Ratings Report.
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