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Investing.com - Barclays raised its price target on Williams-Sonoma (NYSE:WSM) to $180.00 from $168.00 on Thursday, while maintaining an Equalweight rating on the home furnishings retailer. The stock, currently trading at a P/E ratio of 24, appears overvalued according to InvestingPro analysis, which shows the company trading at a premium to its Fair Value.
The research firm expressed positive sentiment toward Williams-Sonoma heading into its second-quarter results, scheduled for August 20th, but noted this optimism is tempered by high market expectations and the stock’s recent strong performance. InvestingPro data reveals impressive returns of 54% over the past year, with the company maintaining a healthy gross profit margin of 46%.
Barclays expects Williams-Sonoma to raise its guidance but cautioned it may be premature to extrapolate potential mid-single-digit comparable sales in Q2, citing uncertainty about consumer demand sustainability and choppy industry trends.
The firm anticipates margins will exceed expectations but remain under year-over-year pressure throughout 2024. Barclays acknowledged Williams-Sonoma is executing well and effectively managing tariff challenges.
Williams-Sonoma shares have climbed more than 34% since June, significantly outperforming the S&P 500’s 7% gain during the same period, which Barclays suggests may already reflect the company’s improved financial control following Q1 issues.
In other recent news, Williams-Sonoma, Inc. announced the expansion of its West Elm Kids collection in collaboration with fashion designer Joseph Altuzarra. The new collection features nature-inspired designs, including furniture and bedding, with prices ranging from $45 to $1,699. Additionally, Williams-Sonoma declared a quarterly dividend of $0.66 per share, payable on August 22, 2025, to shareholders of record as of July 18, 2025. In analyst updates, UBS maintained a neutral rating with a $160 price target, while KeyBanc Capital Markets reiterated an Overweight rating with a $181 price target, highlighting Williams-Sonoma’s market share opportunities and strategic execution. The company is expected to maintain stable margins this year despite modest gross margin pressure. Furthermore, Williams-Sonoma has entered a multi-year partnership with Benjamin Moore, integrating curated color palettes with its brands like Pottery Barn and West Elm. This collaboration aims to enhance customer experiences with in-store design solutions.
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