Williams-Sonoma Inc. (WSM) shares are trading at lower $104.36 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $94.19.
To add more color to this target, the company’s high over the last year is $106.81 and the low is $26.01. Over the last 52 weeks, WSM is up 49.26% while the S&P 500 is up 16.41%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, WSM reported a profit of $551.2 million. Williams-Sonoma Inc. also saw revenues increase to $1.49 billion. In addition, WSM has free cash flow of $140.28 million as of 07-2020. The company’s EBITDA came in at $230.69 million which compares well with its peers.
WSM booked profit margins of 6.80%, its Return on Equity (ROE) is 33.40%, and its Return on Assets is 9.70%. All told, it is clear that, WSM needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. WSM has a short ratio of 6.00 and outstanding shares of 77.78M.
WSM has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.17 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 5.21. Williams-Sonoma Inc. WSM also noted assets of $4.49 billion at the end of the last quarter. Investors should also keep an eye on sector updates as WSM has historically followed its peers on positive news.
All told, Williams-Sonoma Inc. WSM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, WSM represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Williams-Sonoma Inc. WSM is now commanding a market cap of 8.01B and a float of 76.92M. WSM is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of WSM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in WSM, either long or short, and we have not been compensated for this article.