WSM · NYSE · STOCK
Williams-Sonoma (WSM) Stock Analysis
$250.06
52W $165.51 – $254.89
66/100
$29.68B
25.5
1.47
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is WSM Bullish or Bearish?
Bullish.
Innellis AI committee rates Williams-Sonoma, Inc. (WSM) Buy with a composite score of 66/100
, based on 6 analysts with 67% agreement.
Last updated October 16, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +9.50 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -10.50 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Risk Analyst sees a compelling case — low leverage (debt-to-equity 0.00) -- balance sheet can absorb a shock. Portfolio Manager remains cautious — sector concentration is already high (hhi 2739.42). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 57.8% shows genuine earnings power backing the valuation — Value
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Price structure making higher highs and higher lows — Technical
- MACD histogram positive -- bullish momentum — Technical
- Trend and market structure agree -- coherent bullish picture — Technical
Bear Case
- Price-to-book of 12.3x prices in significant intangible value — Value
- RSI at 78 is in overbought territory — Technical
- Price trading above the upper Bollinger Band -- stretched — Technical
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 16, 2026
Overall Committee Score
66/100
Agreement
67%
Analysts
6
Conviction
Moderate
Sector Rank
Top 7%
of 178 Consumer Cyclical peers
Value Analyst
neutral
59
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 57.8% shows genuine earnings power backing the valuation
− Price-to-book of 12.3x prices in significant intangible value
Growth Analyst
bullish
68
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ 5 consecutive earnings beats -- consistent execution
Technical Analyst
bullish
61
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
− RSI at 78 is in overbought territory
Risk Analyst
bullish
80
/ 100 · Low confidence
Risk profile is manageable -- leverage, volatility, and event exposure all look contained
+ Low leverage (debt-to-equity 0.00) -- balance sheet can absorb a shock
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
neutral
60
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2739.42)
Investment Thesis Evolution
Committee score moved marginally from 67.8 to 65.5.
- Conviction changed from high to moderate.
- Committee agreement fell notably from 83% to 67%.
- New bearish signals: 3 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- Bearish pressure eased: 1 signal(s) disappeared.
- Analyst(s) changed stance: News Analyst.
Analyst-level changes:
- News Analyst: stance bullish->neutral; score 66->60 (-6).
- Portfolio Manager: +1 bearish signal(s).
- Technical Analyst: score 69->61 (-8); +2 bearish signal(s).
Comparing 2026-10-15 to 2026-10-16 (1 day apart).
Technical Analysis
RSI (14)
77.9
Overbought
MACD Histogram
1.603
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Hh Hl
Support
$216.72
Resistance
$254.86
Bollinger %B
1.11
Above Upper Band
Price vs Moving Averages
EMA 9
$241.47
Above
EMA 21
$236.82
Above
EMA 50
$232.81
Above
EMA 200
$214.80
Above
Fundamental Analysis
Valuation
19
Growth
72
Profitability
85
Financial Health
72
Cash Flow
70
Valuation
P/E Ratio
25.5×
P/B Ratio
13.86×
PEG Ratio
3.25
Dividend Yield
1.17%
52W High
$254.89
52W Low
$165.51
Quality & Growth
ROE
5226.4%
ROA
2011.2%
Gross Margin
4719.4%
Operating Margin
1920.6%
Revenue Growth YoY
—
Debt / Equity
0.71
AI Fundamental Assessment
P/E ratio of 25.5 (moderate relative to a 15-40x range); Price-to-book of 13.9x; PEG ratio of 3.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 52.3%; Return on assets of 20.1%; Net margin of 14.7%; Gross margin of 47.2%; Current ratio of 1.45 (tight short-term liquidity); Debt-to-equity of 0.71; Free cash flow per share is positive (11.43); Most recent quarter beat estimates by 0.1%; 5 consecutive earnings beats; EPS growth accelerating (-36.5% -> +8.8% QoQ); Average YoY EPS growth of 5.0%; Analyst estimates falling over recent quarters
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