Williams-Sonoma (WSM) Reaches New Lifetime High Today

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 Williams-Sonoma ( WSM) 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 $138.6 million.
  • WSM has traded 3,280 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 1.9%. WSM has a PE ratio of 23.7. Currently there are 9 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 1.4 million shares per day over the past 30 days. Williams-Sonoma has a market cap of $6.5 billion and is part of the services sector and retail industry. The stock has a beta of 0.78 and a short float of 5% with 2.57 days to cover. Shares are up 19.1% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Williams-Sonoma as a buy. 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 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 9.7%. 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.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen 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 ($3.17 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 -9.34%.
  • 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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