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 $54.3 million.
- WSM is down 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 home products. The company operates in two segments, E-commerce and Retail. The stock currently has a dividend yield of 2.5%. WSM has a PE ratio of 29. Currently there are 7 analysts that rate Williams-Sonoma a buy, no analysts rate it a sell, and 12 rate it a hold.
The average volume for Williams-Sonoma has been 1.3 million shares per day over the past 30 days. Williams-Sonoma has a market cap of $5.1 billion and is part of the services sector and retail industry. The stock has a beta of 0.88 and a short float of 10.5% with 9.64 days to cover. Shares are down 3.6% year-to-date as of the close of trading on Tuesday.
rates Williams-Sonoma as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- WILLIAMS-SONOMA INC has improved earnings per share by 13.2% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, WILLIAMS-SONOMA INC increased its bottom line by earning $3.26 versus $2.85 in the prior year. This year, the market expects an improvement in earnings ($3.42 versus $3.26).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income increased by 8.6% when compared to the same quarter one year prior, going from $64.91 million to $70.48 million.
- WSM's debt-to-equity ratio is very low at 0.18 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 0.15 is very weak and demonstrates a lack of ability to pay short-term obligations.
- WSM's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 27.71%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- Net operating cash flow has decreased to $56.24 million or 49.59% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Williams-Sonoma Ratings Report.