Should You Think About Buying Williams-Sonoma, Inc. (NYSE:WSM) Now?

Williams-Sonoma, Inc. (NYSE:WSM) saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Williams-Sonoma’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Williams-Sonoma

What Is Williams-Sonoma Worth?

Great news for investors – Williams-Sonoma is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $219.37, but it is currently trading at US$153 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Williams-Sonoma’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What kind of growth will Williams-Sonoma generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Williams-Sonoma, it is expected to deliver a relatively unexciting earnings growth of 3.1%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since WSM is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on WSM for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy WSM. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

If you want to dive deeper into Williams-Sonoma, you'd also look into what risks it is currently facing. Case in point: We've spotted 1 warning sign for Williams-Sonoma you should be aware of.

If you are no longer interested in Williams-Sonoma, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.