Williams-Sonoma Inc. (NYSE:WSM): Lockdown orders have brought consumers a newfound appreciation of their home kitchens. The stock closed Thursday at 79.50 and have a consensus price target at 76.56.
The San Francisco, California HQ’d company runs 5 segments, which include popular names like West Elm and Pottery Barn.
The stock has been on a Bull run since the March Medical Malpractice chaos lows and the company has recently delivered a beat on earnings expectations.
The March chaos was the perfect time to buy WSM as it fell below the 30 level when investors were selling everything.
From there, the stock jumped up quickly, rallying all the way back to pre-C-19 coronavirus marks by May.
The Key support is at 76.65 and the resistance is 87.38, our technical outlook is Bullish with a very Bullish bias and a long term price target at 125/share.
Savvy investors realized that the stay-at-home environment was perfect for the WSM segments. Consumers wanted to spice up their kitchen, living space or home office and Pottery Barn and West Elm were great places to shop.
Even though the stores were closed the digital platform allowed WSM to thrive in an environment where they might have struggled.
The company reported 0.74 EPS Vs the 0.07 expected and saw revenues at $1.24-B Vs the $1.07-B expected. While the company suspended guidance, it commented positively on the e-Commerce momentum.
Estimates for next Quarter have gone from 0.76 to 0.97, a move of 27%. For next year, estimates have been taken up 53% higher over the same frame.
Investors should stick with the stock as the earnings and price momentum continue because the digital sales doing very well for William-Sonoma and its segments, so the stock will continue to perform in any environment.
Have a healthy weekend, Keep the Faith!