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Williams-Sonoma, Inc.

WSM Consumer Cyclical Unknown Updated July 31, 2026
$228.56
52W $165.51 – $244.65
60/100
$26.92B
25.2
1.49
AI Committee Verdict
Buy
Conviction: Contested · 57% agreement · 7 analysts
+7.0%
-18.5%
0.38:1
Contested
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 60/100 , based on 7 analysts with 57% agreement. Last updated July 31, 2026.

What Would Change This View

Upgrade to Strong Buy
Requires a committee score of 75.0 — +14.90 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 — -5.10 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 split. Analysts see this stock differently enough that the current rating reflects genuine uncertainty, not a weak signal.

Bull & Bear Case

Bull Case
  • ROE of 53.3% shows genuine earnings power backing the valuation — Value
  • 4 consecutive earnings beats -- consistent execution — 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
  • Weekly trend (uptrend) confirms the daily trend -- multi-timeframe agreement — Technical
Bear Case
  • P/E of 25.9 is moderate-to-rich — Value
  • Price-to-book of 12.3x prices in significant intangible value — Value
  • Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
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 July 31, 2026
Overall Committee Score
60/100
Agreement
57%
Analysts
7
Conviction
Contested
Sector Rank
Top 6%
of 124 Consumer Cyclical peers
Value Analyst neutral
54 / 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 53.3% shows genuine earnings power backing the valuation
− P/E of 25.9 is moderate-to-rich
Growth Analyst neutral
52 / 100 · High confidence
Moderate growth -- present but not remarkable
+ 4 consecutive earnings beats -- consistent execution
− Growth rate is decelerating quarter over quarter -- the trend line matters more than the level
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
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 neutral
58 / 100 · Moderate confidence
Macro backdrop is mixed or neutral -- not a strong tailwind or headwind either way
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst bullish
64 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.20 across 15 articles, 14d)
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2744.14)
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Investment Thesis Evolution

Committee score moved marginally from 61.2 to 60.1.

Analyst-level changes:
  • Macro Analyst: stance bullish->neutral; score 65->58 (-8); +2 bullish signal(s).
  • News Analyst: +1 bullish signal(s).
  • Portfolio Manager: +2 bearish signal(s).

Comparing 2026-07-30 to 2026-07-31 (1 day apart).

Technical Analysis

RSI (14)
50.7
Neutral
MACD Histogram
0.247
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Hh Hl
Support
$186.25
Resistance
$244.65
Bollinger %B
0.65
Inside Bands
Price vs Moving Averages
EMA 9
$229.55 Below
EMA 21
$226.63 Above
EMA 50
$218.64 Above
EMA 200
$200.80 Above

Fundamental Analysis

Valuation
20
Growth
51
Profitability
1
Financial Health
65
Cash Flow
37
Valuation
P/E Ratio 25.2×
P/B Ratio 14.48×
PEG Ratio 14.99
Dividend Yield 0.01%
52W High $244.65
52W Low $165.51
Quality & Growth
ROE 52.3%
ROA 20.1%
Gross Margin 46.1%
Operating Margin 18.0%
Revenue Growth YoY
Debt / Equity 0.80
AI Fundamental Assessment
P/E ratio of 25.2 (moderate relative to a 15-40x range); Price-to-book of 14.5x; PEG ratio of 15.0 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 0.5%; Return on assets of 0.2%; Net margin of 0.1%; Gross margin of 0.5%; Current ratio of 1.34 (tight short-term liquidity); Debt-to-equity of 0.80; Free cash flow margin of 0.8% (thin cash generation); Free cash flow per share is positive (9.26); Most recent quarter beat estimates by 5.7%; 4 consecutive earnings beats; EPS growth decelerating (+55.1% -> -36.5% QoQ); Analyst estimates falling over recent quarters
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Explore WSM Further

📈 Rating History 💰 Earnings 📰 Recent Events 🔄 What Changed 📖 Thesis Evolution 🔍 Similar Stocks
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