Stock Analysis | Williams-Sonoma Outlook - Bearish Technicals and Mixed Analyst Sentiment

Market Snapshot

Takeaway: Williams-Sonoma (WSM) is showing weak technical signals and a price drop of -5.29% recently, suggesting investors should proceed with caution. The company is also facing a dividend payable date, which historically has had a negative impact.

News Highlights

Recent news includes Walmart embracing agentic AI in its retail strategy, which could reshape the retail landscape and indirectly affect Williams-Sonoma. Additionally, Lifeway Foods has expanded its retail presence and reported increased sales, showing strong growth in the food and grocery sector. However, these developments don't directly impact Williams-Sonoma, and the company itself has not announced any major news in recent weeks.

Analyst Views & Fundamentals

The average analyst rating for WSM is 3.46, while the performance-weighted rating is 3.21. There is a relatively consistent sentiment among the 10 active institutions, with a recent 20-day prediction count of 13. However, the ratings are not in line with the price trend, which has been falling. Key fundamental factors include:

• Net Cash Flow from Operating Activities per Share (YoY Growth Rate): -7.24% (score: 2).
• Asset-Liability Ratio: 56.82% (score: 3).
• Shareholders’ Equity / Total Liabilities: 0.76% (score: 3).
• Equity Multiplier: 231.61% (score: 3).
• Operating Cycle: 129.48 days (score: 2).
• Total Profit / EBIT: 105.09% (score: 1).
• Cash-UP: 5.36% (score: 3).
• CFOA: 4.73% (score: 1).
• Total Assets Turnover Ratio: 6.58% (score: 2).
• Asset-MV: -7.79% (score: 0).

While some factors show strength, others are weak, and the overall fundamental score is 6.22. This suggests the company is performing moderately well in some areas but has room for improvement in others.

Money-Flow Trends

Large and extra-large money flows are trending negatively, while small money flows are trending positively. The overall inflow ratio is 49.36%, indicating a relatively balanced flow between retail and institutional investors. However, the block trend is negative, which could signal concerns among big-money investors.

Key Technical Signals

The technical analysis of WSM is weak, with a technical score of 3.96 (internal diagnostic score, 0-10). Here's a breakdown of key signals:

• WR Oversold: 6.28 (internal diagnostic score). This indicator suggests a neutral rise, but it has had mixed performance with a 57.14% win rate.
• Dividend Payable Date: 1.06 (internal diagnostic score). This is a strongly bearish signal with a historical win rate of just 33.33% and an average return of -0.67%.
• Earnings Release Date: 4.53 (internal diagnostic score). This signal is neutral, with a 50% win rate and an average return of 1.33%.

In the past 5 days, the WR Oversold signal has appeared repeatedly, and the Dividend Payable Date was active on August 22. These suggest a mixed technical environment with bearish dominance. Momentum is unclear and volatile, and the overall trend remains weak.

Conclusion

Williams-Sonoma is currently facing bearish technical signals and a weak price trend. With an internal diagnostic technical score of 3.96, the stock appears to be in a challenging period. Investors should consider avoiding WSM at this time and wait for clearer momentum or a favorable pull-back. Watch for the impact of the dividend payable date and earnings release date in the near term, as these could further influence market sentiment.