WSM Stock Analysis — Williams-Sonoma
Sector: Retail
AI Verdict
Williams-Sonoma trades at 19x next year's earnings with analysts expecting just 8.5% EPS growth, so you're paying a premium the numbers don't yet support unless its brand moat drives a surprise acceleration.
Competitive Moat
Williams-Sonoma owns a portfolio of premium home goods brands with a direct-to-consumer model that allows for higher margins and customer loyalty. Its proprietary design catalog and exclusive product lines create differentiation and repeat business that is difficult for mass-market retailers to replicate.
Summary
RSI of 27.5 signals the stock is deeply oversold despite a 13.59% gain over the past year.
Where It Stands
Williams-Sonoma trades at 19.0x next year's earnings, just below the consumer staples sector median of 20x, with an 8.5% forward EPS growth expectation and a trailing PEG of 2.23 indicating the valuation is stretched for the growth on offer.
Key Metrics
- RSI: 27.5 — Oversold
- Trailing P/E: 20.6x
- Forward P/E: 19.0x
- PEG Ratio: 2.23
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Market Cap: $21.4B
- Dividend Yield: 0.02%
- 1-Year Return: 13.59%
- 52-Week High: $222.00
- 52-Week Low: $147.39
Analyst Consensus
12 Buy · 14 Hold · 1 Sell (27 analysts)
Bull Case
With a 13.59% 1-year return and forward P/E of 19.0x, the stock offers modest growth at a price in line with sector norms, supported by brand strength and a resilient direct-to-consumer model.
Bear Case
A PEG of 2.23 and RSI of 27.5 suggest the stock is expensive for its 8.5% expected EPS growth and could see further downside if sentiment doesn't recover.
Catalyst to Watch
Watch for upcoming earnings reports—if EPS growth beats the 8.5% consensus, it could justify the premium valuation.