WSM

The article explains the Zacks Earnings ESP (Expected Surprise Prediction) tool, which helps investors identify stocks likely to beat earnings expectations. It highlights two retail/wholesale stocks with positive ESP: Williams-Sonoma with a +5.74% ESP and Alibaba with a +17.12% ESP, both holding Hold ratings and expected to report earnings in November 2026.

Williams-Sonoma stock closed at $253.99, up 1.83% and outperforming the S&P 500's 0.28% gain. The company is forecasted to report EPS of $2.16 (up 10.2% YoY) and revenue of $1.98 billion (up 5.39% YoY).

For the full year, earnings are projected at $9.51 per share and revenue at $8.23 billion. However, WSM trades at a Forward P/E of 26.24, above the industry average of 17.04, and holds a Zacks Rank of #3 (Hold).

Williams-Sonoma (WSM) has attracted investor attention with a +9.8% return over the past month, outperforming the S&P 500. The company shows positive earnings growth expectations of +10.2% for the current quarter and +10.3% for next fiscal year, with consistent revenue growth projected at 5.5% for the current year. However, the stock carries a Zacks Rank #3 (Hold) rating and trades at a premium valuation (Grade D) compared to peers, suggesting it may perform in line with the broader market in the near term.