WSM · NYSE · STOCK
Williams-Sonoma (WSM) Stock Analysis
$241.84
52W $165.51 – $254.89
68/100
$28.47B
24.4
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 68/100
, based on 6 analysts with 83% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +6.92 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 — -13.08 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 2796.97). 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
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 10, 2026
Overall Committee Score
68/100
Agreement
83%
Analysts
6
Conviction
High
Sector Rank
Top 5%
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
69
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
Risk Analyst
bullish
75
/ 100 · Moderate 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
bullish
73
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.47 across 19 articles, 14d)
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 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 68.4 to 68.1.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 1 appeared.
Analyst-level changes:
- News Analyst: +1 bullish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
67.7
Neutral
MACD Histogram
1.628
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Hh Hl
Support
$186.25
Resistance
$244.65
Bollinger %B
0.89
Inside Bands
Price vs Moving Averages
EMA 9
$237.12
Above
EMA 21
$233.59
Above
EMA 50
$230.96
Above
EMA 200
$213.63
Above
Fundamental Analysis
Valuation
21
Growth
72
Profitability
85
Financial Health
72
Cash Flow
70
Valuation
P/E Ratio
24.4×
P/B Ratio
13.30×
PEG Ratio
3.11
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 24.4 (inexpensive relative to a 15-40x range); Price-to-book of 13.3x; PEG ratio of 3.1 (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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