WSM Stock Analysis — Williams-Sonoma
Sector: Retail
AI Verdict
Williams-Sonoma trades at 23.8x next year's earnings while analysts expect 14.0% EPS growth—you're paying a slight premium for reliable brands, but unless growth accelerates, the valuation leaves little room for disappointment.
Competitive Moat
Williams-Sonoma owns a portfolio of premium home goods brands (including Pottery Barn and West Elm) with a direct-to-consumer model that builds customer loyalty and pricing power. Its scale in e-commerce logistics and exclusive product lines create switching costs and defend margins against generalist competitors.
Summary
Williams-Sonoma is notable for its premium brand portfolio and direct-to-consumer e-commerce strength in home furnishings.
Where It Stands
The stock is up 19.55% over the past year, trades at 23.8x next year's earnings (above the retail sector median of ~20x), and its RSI of 60.0 signals a neutral-to-elevated technical setup.
Key Metrics
- RSI: 60 — Neutral
- Trailing P/E: 27.1x
- Forward P/E: 23.8x
- PEG Ratio: 2.05
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Market Cap: $28.5B
- Dividend Yield: 0.02%
- 1-Year Return: 19.55%
- 52-Week High: $254.89
- 52-Week Low: $165.51
Analyst Consensus
14 Buy · 14 Hold · 0 Sell (28 analysts)
Bull Case
With analysts expecting 14.0% forward EPS growth and a forward P/E of 23.8x, you’re paying a modest premium for a brand with steady earnings momentum.
Bear Case
If the P/E falls to the sector median of 20x, that would mean a 16% valuation drop even if earnings meet expectations.
Catalyst to Watch
Watch for quarterly earnings updates—if EPS growth hits or beats the 14.0% consensus, the premium may hold.