WSM stock: buy or sell?
Dec 1st, 2020
WSM stock brief
- After marking new highs on November 24, Williams-Sonoma closed on Tuesday at $110.74 inching a 1.16%
- The stock is configuring an uptrend pattern since last March, when it bottomed at $25.49. Up to date, the uptrend made a 334.44% gain since the beginning of this rally
- Williams-Sonoma made public its earnings report on November 19
- Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home.
Should I buy Williams-Sonoma stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $WSM stock a buy?
Currently, Williams-Sonoma stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $WSM will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Williams-Sonoma stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies prevent us from making impulsive decisions based on our personal sentiments or the buzz surrounding the market. When selling, as well as buying, detailed strategies are very simple to use and are only valid for selling stocks in your porfolio, not for shorting $WSM stock
A guiding principle is that you should never hold an investment that generates greater losses than those expected by the time of purchase. The timing to sell your stock must always be ruled by the stop-loss (automatic or manual)
Is it time to sell Williams-Sonoma stock?
In the current situation of Williams-Sonoma there is not any eligible sell setup, so Williams-Sonoma stock holders with operations in profit can keep their positions
In the last month, 8 analyst ratings were published for Williams-Sonoma
|Nov 12th, 2020|
|Gordon Haskett|| |
|Nov 13th, 2020|
|JPMorgan Chase & Co.||Sell|
|Nov 20th, 2020|
|Royal Bank of Canada||Neutral|
|Nov 23rd, 2020|
Williams-Sonoma stock analysis
Since last March, Williams-Sonoma has been drawing an uptrend that so far marked an amazing 334.44%. The price action shows higher peaks and higher troughs, and along the way provided some buy points for those who wanted to enter. Latest pullback was in early November, when price bounced at $87.95. Like in all uptrends, price needs to rest and now price is consolidating the gains in a range between $114.65 and $87.95
$WSM at new All-time Highs
On November 24, Williams-Sonoma reached new all-time highs (ATH) again at $114.65
Supports and resistances
The current resistance levels are:
The current supports are:
Since the price surpassed the upper band last Wednesday, the price corrected downwards by 2.86%
Relative strength index
The RSI dropped below the overbought level of 70 last Wednesday after just crossing to the overbough zone for just one day (weak signal). The RSI value on Tuesday was 65.28. Since then, Williams-Sonoma shares fell a 1.97%
Williams-Sonoma stock price history
Williams-Sonoma went public priced at an adjusted price1 of $0.73 on Jul 1983. Since then, WSM stock has risen by 15,069.86%, with an average of 407.29% per year. If you had invested thousand dollars in Williams-Sonoma stock on the IPO, it would have a value of $151,698.63 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Williams-Sonoma stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions post their price predictions based on the stock price action and the company fundamental data. Most of these estimates follow the release of new fundamental information by the company, and many times. Again, these forecasts are not direct recommendations for small traders and must not be followed blindly.
There are 8 price predictions posted for Williams-Sonoma that average $114.00. That is a 2.94% than the last price ($110.74).
|Brokerage firm||Price target|
|Nov 12th, 2020|
|Nov 13th, 2020|
|JPMorgan Chase & Co.||$80.00 → $95.00|
|Nov 20th, 2020|
|Barclays||$112.00 → $144.00|
|Loop Capital||$100.00 → $110.00|
|Royal Bank of Canada||$101.00 → $117.00|
|Wedbush||$115.00 → $130.00|
|Nov 23rd, 2020|
|Morgan Stanley||$75.00 → $95.00|
Earnings and financials
Financial call was hosted by Williams-Sonoma ($WSM) on November 19 after posting the earnings report. WSM beat Wall St estimates and posted of $2.56, that is a 67.32% improvement compared to the predictions of $1.53. In line, reported revenues were $1.8 billion versus estimates of $1.6 billion.In comparison, the EPS for the same quarter last year was $1.02, so reported EPS is a gain of 150.98%. Looking at revenue, figures skyrocketed a 22.33% compared to $14.4B same quarter a year ago.
WSM ($WSM) is hosting the earnings call next March. Analysts expect of $3.27, that is a 27.73% more than Q3.
Williams-Sonoma belongs to the Specialty Retail industry, which contain 33 industry peers.
The following are some of Williams-Sonoma biggest competitors:
|Company||Market cap||Rating||Bullish ratings1|
|O'Reilly Automotive ($ORLY)||$32.1B||Neutral||0|
|Best Buy ($BBY)||$27.8B|| ||5|
|Tractor Supply ($TSCO)||$15.6B||Neutral||0|
|Ulta Beauty ($ULTA)||$14.8B||Buy||2|
|Genuine Parts ($GPC)||$14.1B||Neutral||0|
1 In the last 30 days.
To better understand Williams-Sonoma stock performance you must compare its gains with other related stocks in same sector or industry.. For Williams-Sonoma, the benchmark is made against O'Reilly Automotive, Best Buy, AutoZone, Tractor Supply, Ulta Beauty and Genuine Parts.
|O'Reilly Automotive ($ORLY)||2.50%||-4.20%||8.00%|
|Best Buy ($BBY)||-3.60%||-4.00%||34.90%|
|Tractor Supply ($TSCO)||4.10%||-6.20%||14.40%|
|Ulta Beauty ($ULTA)||33.70%||19.70%||11.60%|
|Genuine Parts ($GPC)||9.10%||5.60%||16.30%|
Important note:The comments given in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this article does not have an understanding of the individual scenarios of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are posted for educative motives only
|Tuesday, December 1st, 2020|
|Day range||$109.37 - $111.69|
|Average true range||$6.48|
|50d mov avg||$97.70|
|100d mov avg||$93.31|
|200d mov avg||$78.41|
|Earnings date||March 17th, 2021|