Trade-Ideas: Williams-Sonoma (WSM) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader 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 $151.9 million.
- WSM is up 3.3% today from today's close.
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More details on WSM:
Williams-Sonoma, Inc. operates as a multi-channel specialty retailer of various products for home. It operates through two segments, E-commerce and Retail. The stock currently has a dividend yield of 3%. WSM has a PE ratio of 15. Currently there are 7 analysts that rate Williams-Sonoma a buy, 2 analysts rate it a sell, and 11 rate it a hold.
The average volume for Williams-Sonoma has been 1.8 million shares per day over the past 30 days. Williams-Sonoma has a market cap of $4.5 billion and is part of the services sector and retail industry. The stock has a beta of 0.76 and a short float of 14% with 4.21 days to cover. Shares are down 12.9% 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, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- WSM's revenue growth trails the industry average of 13.2%. Since the same quarter one year prior, revenues slightly increased by 2.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- WSM has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.27 is very weak and demonstrates a lack of ability to pay short-term obligations.
- Looking at the price performance of WSM's shares over the past 12 months, there is not much good news to report: the stock is down 37.22%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Specialty Retail industry average, but is greater than that of the S&P 500. The net income has decreased by 4.0% when compared to the same quarter one year ago, dropping from $147.04 million to $141.13 million.
- You can view the full Williams-Sonoma Ratings Report.
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