WSM Stock Analysis: Buy, Sell, or Hold?

WSM - Williams-Sonoma, Inc.

RETAIL-HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES
$237.58
1.88 (0.80%) ▲
5d: -1.66%
30d: +8.68%
90d: +23.78%
WAIT
LOW Confidence
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Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Aug 26, 2026 1d

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
â„šī¸ NEUTRAL: WSM is fairly priced but lacks strong directional signals. At 5.0% expected growth, valuation appears stretched. Wait for clearer setup or better entry on dips.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$255.50
Based on 4.5% avg growth
INTRINSIC VALUE TODAY
$158.65
Trading above historical range

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 22.4x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: WSM is currently trading at $237.58, which is considered slightly high relative to its 30-day fair value range of $222.42 to $244.96. From a valuation perspective, the stock is trading at a premium (Forward PE: 26.0) compared to its historical average (22.4). At these levels, the market is pricing in 5.0% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.

Technical Outlook: Technically, WSM is in a strong uptrend. The price is currently testing key support at $233.33. A bounce from this level would confirm strength, while a break below could signal further downside.

Market Sentiment: WSM scores 15/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.

Quick Decision Summary

Current Position SLIGHTLY HIGH
Historical Trading Range $222.42 - $244.96
Company Quality Score 44/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 37.1%

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All Signals

  • BEARISH: Weak technical setup (15/100)
  • BULLISH: High volume confirmation
  • NEUTRAL: Near Wall St target ($229.25)
  • NEUTRAL: Trading at premium valuation - market expects 5.0% growth which is achievable
  • WARNING: Composite score 44/100 in the bottom quintile — this cohort historically lags the market

Trading Range Analysis

30-Day Trading Range $222.42 - $244.96
Current vs Trading Range SLIGHTLY HIGH

Support & Resistance Levels

Support Level $233.33
Resistance Level $254.89
Current Trend Strong Uptrend
Technical data as of Aug 21, 2026

Fundamental Context

Forward P/E (Next Year Est.) 25.96
Wall Street Target $229.25 (-3.5%)
Revenue Growth (YoY) 4.4%
Earnings Growth (YoY) 4.3%
Profit Margin 13.8%
Valuation Premium vs History +5.0% premium
PE vs Historical 26.0 vs 22.4 STRETCHED
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +5.0% (market-implied from PE analysis)
1-Year Target $249.46 (+5%)
2-Year Target $261.93 (+10%)
3-Year Target $275.03 (+16%)
3-Yr Target (if PE normalizes) (PE: 26→22) PE COMPRESSION $237.35 (0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 26.0, Growth: 5.0%) $274.73 (+16%)
Base: (SPY PE: 20.1, Growth: 5.0%) $212.43 (-11%)
Bear: (PE: 17.1, Growth: 5.0%) $180.57 (-24%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (27x PE), but valuation improves significantly next year (26x PE) as earnings recover.
Trailing PE: 27.19 | Current EPS (TTM): $8.67
Bull Case $273.72 (+15%)
Analyst growth 5.6%, PE expands to 29.9
Base Case $248.84 (+5%)
Market implied 5.6%, PE stable at 27.2
Bear Case $160.28 (-33%)
Severe decline -20.0%, PE contracts to 23.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
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Last updated: August 23, 2026 9:21 PM ET
Data refreshes hourly during market hours. Next update: 10:21 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
8
Sells
Net
INSIDERS SELLING
Recent Transactions
Laura Alber SELL 15000 shares 2026-04-17
Jeffrey Howie SELL 1419 shares 2026-04-08
Karalyn Yearout SELL 2267 shares 2026-04-08

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