WSM Stock Analysis — Williams-Sonoma
Sector: Retail
AI Verdict
Williams-Sonoma is trading at a slight premium to retail peers for 7% earnings growth, so you're paying up for the brand and direct model, but the oversold RSI means any positive surprise could spark a sharp rebound.
Competitive Moat
Williams-Sonoma controls a portfolio of premium home goods brands with a direct-to-consumer model that gives it pricing power and customer data advantages. Its scale in supply chain and exclusive product lines make it hard for smaller competitors to match both assortment and margins.
Summary
WSM is flashing oversold on a 34.1 RSI despite a 35.39% gain over the past year, putting it on radar for mean reversion.
Where It Stands
Williams-Sonoma trades at 23.2x next year's earnings versus the retail sector median of ~20x, with a 7.0% forward EPS growth forecast and a trailing PEG of 3.67 signaling a premium price for modest growth.
Key Metrics
- RSI: 34.1 — Near Oversold
- Trailing P/E: 24.9x
- Forward P/E: 23.2x
- PEG Ratio: 3.67
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Market Cap: $25.9B
- Dividend Yield: 0.02%
- 1-Year Return: 35.39%
- 52-Week High: $244.65
- 52-Week Low: $161.76
Analyst Consensus
13 Buy · 14 Hold · 0 Sell (27 analysts)
Bull Case
The 35.39% 1-year return shows buyers have rewarded Williams-Sonoma's steady execution and direct model, supporting its above-average P/E.
Bear Case
If the P/E falls to the sector median of 20x, that's a 14% multiple compression risk from the current 23.2x forward P/E, especially with only 7.0% EPS growth expected.
Catalyst to Watch
Watch for upcoming earnings — a beat and raised guidance would justify the premium, while a miss could trigger further multiple compression.