Long-term consistency is key to WSM
Williams-Sonoma, Inc. (NYSE: WSM) is a US retail company that sells kitchen items and home furnishings. Williams-Sonoma is one of the largest e-commerce retailers in the United States and one of the largest multi-channel specialty retailers in the world. William-Sonoma brands include Pottery Barn, Pottery Barn Kids, PBteen, Williams Sonoma, Williams Sonoma Home, West Elm, Mark and Graham, and Rejuvenation. This afternoon the WSM was last traded 0.2% lower at $ 153.87.
Williams Sonoma stock is up an impressive 84% year over year and is up 90% since it hit a low of $ 80.99 around that time last year. Additionally, WSM’s shares are up 50% since the start of the year, but are currently down a whopping 21% since hitting a record high of $ 194.69 in May. Williams Sonoma stock also has a forward dividend of $ 2.36 and a dividend yield of 1.53%.
On the earnings front, Williams-Sonoma has beaten Wall Street estimates in all four of its most recent quarterly earnings reports. For the third quarter of 2020, WSM beat analyst estimates by a margin of $ 0.80 and reported earnings per share (EPS) of $ 1.80. For the fourth quarter of 2020, Williams-Sonoma earnings per share rose to $ 2.56, beating expectations by $ 1.03. For the first quarter of 2021, WSM posted a further increase in earnings to $ 3.95 per share, beating estimates by a margin of $ 0.56. In its most recent quarterly report, Williams-Sonoma reported earnings per share of $ 2.93, beating expectations by $ 1.10.
In general, Williams-Sonoma shares are currently trading at an excellent price-earnings-ratio of 13.97. In addition, the company has seen consecutive sales and net income growth for years. Overall, Williams Sonoma stock appears to be an excellent value stock for investors looking for long-term gains. WSM offers modest growth potential and a decent dividend yield with very little risk, which is critical in today’s volatile market.
Despite this long-term outperformance of the company, the analyst outlook for WSM has wavered, which leaves plenty of room for upgrades. Today, 12 of the 18 brokerage firms covered have a tepid “hold” or “strong sell” rating.
In addition, pessimism has been deep in the option pits for at least two weeks. This corresponds to the stock’s 10-day put / call volume ratio of 1.11, which was recorded in the 88th