Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand. The company also provides home decor products under the West Elm brand; kids accessories under the Pottery Barn Kids brand; and an organic bedding to multi-purpose furniture under the Pottery Barn Teen brand. In addition, it offers made-to-order lighting, hardware, furniture, and home decors inspired by history under the Rejuvenation brand; and women's and men's accessories, travel, entertaining and bar, home décor, and seasonal items under the Mark and Graham brand, as well as operates a 3-D imaging and augmented reality platform for the home furnishings and décor industry. The company markets its products through e-commerce websites, direct-mail catalogs, and retail stores. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.

Williams-Sonoma appears to be a high-quality but already expensive retailer with very strong profitability and weak liquidity. A P/E ratio around the industry median does not look alarming; however, the P/S, P/B, and P/FCF ratios are noticeably above the market, which limits rerating potential and calls for a discount to the target price. At the same time, ROE, ROA, operating margin, net margin, and return on tangible equity are significantly above industry levels, and their trends over recent periods are generally stable, confirming the high quality of the business. Gross margin is holding around 46% and is barely deteriorating, while operating and net profit remain resilient, supporting the company’s assessment as an efficient profit generator. Revenue and earnings do not show sharp growth year over year, but they also do not show signs of systematic deterioration, so the fundamental base remains solid. The balance sheet, meanwhile, does not appear to be aggressively leveraged: debt/equity is zero, and long-term debt is minimal, which is a strong positive for stability. On the other hand, a quick ratio of 0.51 and a current ratio of 1.33 indicate limited short-term liquidity, and cash on hand has declined compared with earlier levels, which adds caution. Equity and net worth look strong in absolute terms, but their decline versus previous periods suggests that the margin of safety is not increasing. Dividend yield is low and has been declining in recent periods, so the dividend factor cannot meaningfully support the valuation. Overall, this is a company profile with excellent operating efficiency but a high market valuation on sales, book value, and free cash flow. For an investor, this means the base forecast should be slightly reduced: the fundamentals are good, but the current price already reflects much of the business’s strong performance.

Williams-Sonoma, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Средний индекс, значительно вырос. Увеличился приток средств в лонги.

Medium index, significantly up. The inflow of funds into longs has increased.

WSM demonstrates strong profitability and low debt, but its high P/S, P/B, and P/FCF valuations and weak liquidity limit its growth potential.

Key Points
Vanguard and Fidelity research suggests that U.S. small-cap stocks might keep outperforming large-cap stocks.
Two popular small-cap ETFs have both outperformed the S&P 500 and Nasdaq-100 in the past year.
The same types of stocks don't always keep winning forever. For most of the past 15 years, U.S. large-cap growth stocks (such as major tech companies) have been some of the best places to invest. But that might not be true in the future.
According to Vanguard's latest market forecast, U.S. small-cap stocks will deliver annualized returns of 5.8% to 7.8% for the next 10 years, outperforming U.S. large-cap stocks (which are expected to return 4.8% to 6.8%). Other recent research from Fidelity shows that small-cap stocks have been demonstrating stronger earnings and cheap valuations. That all could add up to stronger performance in the long run.
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If you want to buy small-cap stocks to fit this strategy, which exchange-traded funds (ETFs) should you choose? Let's look at two popular ETFs: the iShares Russell 2000 ETF (NYSEMKT: IWM) and the Vanguard Small-Cap Value ETF (NYSEMKT: VBR). Both small-cap ETFs have outperformed the S&P 500 index and the tech-heavy Nasdaq-100 index year to date.
Let's take a closer look at these small-cap ETFs and see which could be the best choice for long-term investors in the next 10 years.
iShares Russell 2000 ETF (IWM): 1,974 stocks, 8.7% annualized returns for 26 years
The iShares Russell 2000 ETF (IWM) could be a good choice because it's simple and broadly diversified. It lets you buy "all" the small caps at once. This fund owns 1,974 stocks and intends to track the performance of the Russell 2000 index. During the last 26 years, since the fund's inception in May 2000, it has delivered average annual returns of 8.7%. In the past three years, it's delivered 18%, and in the past year, it's delivered a return of about 41%.
This fund charges an expense ratio of 0.19%, which is a bit higher than most low-cost index funds. But it ranks on the list of best small-cap ETFs and could be worth considering for long-term investors who want exposure to a diversified portfolio of small-cap stocks.
Vanguard Small-Cap Value ETF (VBR): 840 stocks, 26 years of 9.51% annualized returns
The Vanguard Small-Cap Value ETF is a targeted way to invest in value-oriented small-cap stocks. This ETF could also be a good bet based on other Vanguard research projections, which show U.S. value stocks outperforming growth stocks for the next 10 years.
The Vanguard Small-Cap Value ETF holds 840 stocks. That's a lot fewer stocks than the Russell 2000 fund, but still well diversified. This Vanguard ETF has been available since January 2004, and it has delivered average annual returns (by net asset value) of 9.5%.
In the past three years, it's delivered annualized returns of about 16%, and in the past year, it's delivered a return of about 27%.
This Vanguard ETF charges lower fees than the Russell 2000 fund, with an expense ratio of only 0.05%. It currently does not make the list of best value ETFs, but it could be worth considering if you want exposure to small-cap value stocks.
Why buy IWM or VBR
Here's a quick head-to-head breakdown of these two small-cap ETFs:
Metric
iShares Russell 2000 ETF (IWM)
Vanguard Small-Cap Value ETF (VBR)
Number of Stocks
1,974
840
Top sector holdings
Healthcare: 19.94% of fund
Financials: 19.3%
Industrials: 14.4%
Information technology: 12.75%
Consumer discretionary: 9.6%
Industrials: 20.8% of fund
Financials: 18.1%
Consumer discretionary: 14.6%
Real estate: 10.2%
Technology: 8.5%
Top five stock holdings
Brightspring Health Services: 0.35% of fund
Moog: 0.34%
UMB Financial Corp.: 0.34%
Cytokinetics: 0.33%
Old National Bancorp: 0.30%
Jabil: 0.87% of fund
NRG Energy: 0.66%
Tapestry: 0.63%
Atmos Energy: 0.61%
Williams-Sonoma: 0.58%
Price-to-earnings (P/E) ratio
18.2
18
Trailing-12-month dividend yield
0.88%
1.78%
Expense ratio
0.19%
0.05%
Data sources: iShares, Vanguard, Yahoo! Finance.
Choosing the best small-cap stocks can be especially complex and risky. Some of these stocks are the up-and-coming large companies of the future, but some are less profitable and more likely to fail. With that in mind, if I had to choose between these small-cap ETFs, I would buy the iShares Russell 2000 ETF (IWM) because it has a more diversified portfolio. Even though it charges a higher fee, this iShares fund could be a better buy for most long-term investors.
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Ben Gran has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cytokinetics, Moog, NRG Energy, and Williams-Sonoma. The Motley Fool recommends Tapestry. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: U.S. Small-Cap Stocks Will Beat Large Caps for 10 Years

Key Points
Williams-Sonoma generates consistently higher overall revenue than RH across the observed periods.
Williams-Sonoma experiences significant quarter-over-quarter volatility in revenue the past two years, while RH maintains a more stable trend.
Investors should watch whether the revenue gap between the two companies continues to follow this historical pattern or begins to shift.
Top retail brands have struggled to grow revenue amid inflation and soft consumer spending over the past few years. This has particularly weighed on growth in home goods and furnishings. Despite these headwinds, shares of Williams-Sonoma (NYSE:WSM) have outperformed RH (NYSE:RH).
Here’s a look at how these retail companies compare on revenue performance, and which could be the better bet beyond 2026.
Williams-Sonoma: Navigating Seasonal Revenue Cycles
Williams-Sonoma functions as a specialized, multi-channel retailer offering a diverse array of home products. While managing a product recall and launching a new brand for dorm rooms, the company reported an approximately 13% net income margin for the quarter ended May 3, 2026.
RH: Maintaining Flat Revenue Trends
RH operates as a retailer specializing in home furnishings through its retail galleries, catalogs, and online platforms. While opening new international gallery locations in Milan and London, it reported an EBIT margin of approximately 4% for the quarter ended May 2, 2026.
Why Revenue Matters for Retail Investors
Revenue is the most fundamental measure of a company’s performance. Investors can easily track it over time to measure a business’s overall scale and demand, which can be very helpful when comparing it with others in the same industry.
Quarterly Revenue for Williams-Sonoma and RH
Q3 2024
$1.8 billion (period ended July 2024)
$829.7 million (period ended Aug. 2024)
Q4 2024
$1.8 billion (period ended Oct. 2024)
$811.7 million (period ended Nov. 2024)
Q1 2025 (Jan. 2025)
$2.5 billion
$812.4 million
Q2 2025
$1.7 billion (period ended May 2025)
$814.0 million (period ended May 2025)
Q3 2025
$1.8 billion (period ended Aug. 2025)
$899.2 million (period ended Aug. 2025)
Q4 2025
$1.9 billion (period ended Nov. 2025)
$883.8 million (period ended Nov. 2025)
Q1 2026
$2.4 billion (period ended Feb. 2026)
$842.6 million (period ended Jan. 2026)
Q2 2026
$1.8 billion (period ended May 2026)
$800.3 million (period ended May 2026)
Data source: Company filings. Data as of July 13, 2026.
Foolish Take
Macroeconomic headwinds, including higher prices and interest rates, have weighed on both companies’ revenue growth. However, Williams-Sonoma has managed to convert a higher percentage of its revenue into net income, boosting its share price. RH hasn’t fared as well on the margin front, which has tanked its stock price.
A near-term catalyst for Williams-Sonoma is near-term market share gains and continued momentum in comparable store sales growth. Comp sales, which measure performance excluding new stores, grew 4.8% year over year last quarter. This looks particularly strong in an overall weak market for home goods.
RH hasn’t been able to maintain its margins, but it has a history of earning above-average retail margins in a healthy home furnishings market. This is noteworthy given management’s forward guidance. It now expects full-year revenue to grow 4.5% to 8%, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin reaching the mid-teens.
Both stocks are trading at a similar forward price-to-earnings multiple of about 24. However, analysts expect RH to post earnings growth of approximately 16% annualized over the next two years, compared to just 7% for Williams-Sonoma. This could make RH stock the better buy right now.
RH will need to execute. It needs to meet guidance in revenue growth and margins. Long term, RH’s international expansion efforts might be the catalyst that narrows its revenue gap with Williams-Sonoma, potentially leading to superior returns for shareholders.
Should you buy stock in Williams-Sonoma right now?
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Williams-Sonoma. The Motley Fool recommends RH. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Williams-Sonoma vs. RH: Which Retail Stock Is the Better Buy Right Now?

Williams-Sonoma (WSM) closed at $216.65 in the latest trading session, marking a -2.3% move from the prior day. This move lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 1.55%.
The seller of cookware and home furnishings's stock has dropped by 0.8% in the past month, falling short of the Retail-Wholesale sector's gain of 1.39% and the S&P 500's gain of 4.28%.
The investment community will be closely monitoring the performance of Williams-Sonoma in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.03, marking a 1.5% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.91 billion, indicating a 4.16% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.39 per share and a revenue of $8.15 billion, representing changes of +6.22% and +4.4%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Williams-Sonoma. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.57% rise in the Zacks Consensus EPS estimate. Williams-Sonoma presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Williams-Sonoma has a Forward P/E ratio of 23.61 right now. This indicates a premium in contrast to its industry's Forward P/E of 22.87.
Investors should also note that WSM has a PEG ratio of 2.43 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Home Furnishings was holding an average PEG ratio of 1.9 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why Williams-Sonoma (WSM) Fell More Than Broader Market

Key Points
Small-cap stocks have outperformed large caps in 2026 by the widest margin since 2003.
Even after the stcong start to the year, they still trade for a steep discount to the S&P 500.
The Vanguard Small-Cap Value ETF could be a smart addition to a long-term investment portfolio right now.
Over the past few years, mega-cap technology stocks have dominated the headlines, and for good reason. The performance of companies like Nvidia (NASDAQ: NVDA) and Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) has made owning anything other than the Magnificent Seven feel like a mistake.
Small-cap stocks, especially those outside of the technology sector, have underperformed for years. However, the tide seems to be turning. So far in 2026, small-caps are outperforming the S&P 500 by the widest margin in over two decades, and this could be just the beginning of a longer trend.
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One low-cost ETF that investors might want to take a closer look at is the Vanguard Small-Cap Value ETF (NYSEMKT: VBR), which holds 835 smaller companies, most of which have below-average price-to-book and price-to-earnings ratios relative to peers.
The Vanguard Small-Cap Value ETF
The Vanguard Small-Cap Value ETF is an index fund that tracks a diversified index of smaller companies with value characteristics. As mentioned earlier, it owns 835 different stocks with a median market cap of about $10 billion.
On average, stocks held by this index fund have a price-to-earnings ratio of 17.8, compared with 28.1 for the S&P 500 index. As you might expect from a value stock fund, the Vanguard Small-Cap Value ETF is light on technology, but has large concentrations in industrials, financials, and consumer discretionary stocks. To name a few, the fund's larger holdings include NRG Energy (NYSE: NRG), Williams-Sonoma (NYSE: WSM), and Alcoa (NYSE: AA).
Although this is a weighted index fund, no single stock accounts for more than 1.25% of the fund's assets. And like most Vanguard ETFs, the Vanguard Small-Cap Value ETF has a low expense ratio (0.05%). These are the annual investment fees, which will be reflected in the fund's performance over time.
Still a good value
As I said earlier, small-cap stocks have outperformed this year, and the Vanguard Small-Cap Value ETF is up about 13% so far in 2026. But there is still a significant valuation gap between large-cap and small-cap stocks, and there could still be plenty of upside potential ahead.
For one thing, value stocks tend to benefit most from interest rate cuts, as they tend to carry more floating-rate debt than their large-cap counterparts. We're still in a relatively high-rate environment, plus small-cap stocks still trade at a significant discount to their historical average P/E ratios.
To be clear, I'm not saying I expect rates to fall right away or that the valuation gap between small- and large-cap stocks to close right away. But over the next several years, factors like these could lead to continued outperformance.
Should you buy stock in Vanguard Small-Cap Value ETF right now?
Before you buy stock in Vanguard Small-Cap Value ETF, consider this:
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Matt Frankel, CFP® has positions in Vanguard Small-Cap Value ETF. The Motley Fool has positions in and recommends Alphabet, NRG Energy, Nvidia, and Williams-Sonoma. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This Vanguard ETF Owns Stocks Nobody Is Talking About -- and That's Why It's Worth a Look

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the First Trust Rising Dividend Achievers ETF (Symbol: RDVY) where we have detected an approximate $1.8 billion dollar outflow -- that's a 6.9% decrease week over week (from 323,350,002 to 301,100,002). Among the largest underlying components of RDVY, in trading today Mueller Industries Inc (Symbol: MLI) is off about 4.8%, Williams Sonoma Inc (Symbol: WSM) is down about 1.2%, and Snap-On, Inc. (Symbol: SNA) is higher by about 0.2%. For a complete list of holdings, visit the RDVY Holdings page » The chart below shows the one year price performance of RDVY, versus its 200 day moving average:
Looking at the chart above, RDVY's low point in its 52 week range is $61.84 per share, with $81.36 as the 52 week high point — that compares with a last trade of $80.96. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further RDVY Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

RDVY, MLI, WSM, SNA: ETF Outflow Alert

The Home Depot Inc.’s HD ability to sustain margin strength is becoming increasingly important as demand across the home improvement sector remains subdued. In the first quarter of fiscal 2026, the company reported sales growth of 4.8% to $41.8 billion, while comparable sales inched up 0.6%, reflecting a demand environment that management described as largely unchanged from fiscal 2025. Housing affordability pressures, elevated mortgage rates, and muted large-scale remodeling activity continue to weigh on customer spending.
Despite these headwinds, Home Depot is demonstrating resilience through operational execution and strategic investments. The company continues to gain market share, supported by strength in professional customers, digital sales growth exceeding 10% and expanding capabilities through acquisitions such as SRS, GMS and Mingledorff’s. Management highlighted that Pro sales outperformed DIY demand, with complex purchase occasions showing strongest growth, underscoring the effectiveness of its “winning the Pro” strategy.
From a margin perspective, the fiscal first-quarter gross margin declined 75 basis points (bps) to 33% due to the GMS acquisition and pricing investments at SRS. However, management emphasized that the core Home Depot business maintained a stable margin profile, while reaffirming its full-year gross margin guidance of 33.1% and the adjusted operating margin outlook of 12.8-13%.
The key question is whether margin stability can compensate for sluggish demand. While disciplined cost management, operational efficiencies and a richer Pro mix can help protect profitability, sustained earnings growth will ultimately require stronger project demand. For now, Home Depot’s margin resilience, market-share gains and strategic expansion provide a meaningful buffer against demand challenges, allowing the company to navigate a prolonged housing downturn while positioning itself for growth.
How Are LOW & WSM Faring in Terms of Profit Margins?
While Home Depot has long been known for its strong profitability, investors are also closely watching how peers Lowe’s Companies Inc. LOW and Williams-Sonoma Inc. WSM are performing on the margin front amid a challenging demand environment.
Lowe’s is facing weak DIY demand, elevated rates and low housing turnover, but margin discipline is helping cushion the pressure. In first-quarter fiscal 2026, comps rose 0.6%, while the gross margin fell 70 bps to 32.7% due mainly to acquisition dilution. SG&A leveraged 17 bps, supported by cost controls and productivity initiatives. Management reaffirmed its 11.6-11.8% adjusted operating margin outlook, signaling confidence despite demand challenges.
Williams-Sonoma is demonstrating that strong margins can help offset broader demand uncertainties. In first-quarter fiscal 2026, the company posted a 4.8% comps increase and delivered an operating margin of 16.2%, exceeding expectations despite absorbing higher tariffs and fuel costs. Supply-chain efficiencies, disciplined cost management and strong full-price selling helped mitigate margin pressures. While management remains cautious about the macro environment, its profitability and execution provide a meaningful cushion against demand volatility.
HD’s Price Performance, Valuation & Estimates
Shares of Home Depot have lost 3.1% in the past six months versus the industry’s decline of 4.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 21.6X compared with the industry’s average of 19.95X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HD’s fiscal 2026 and fiscal 2027 EPS implies year-over-year growth of 4.2% and 2.2%, respectively. The company’s EPS estimates for fiscal 2026 and 2027 have moved down 0.3% and 0.9%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Home Depot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Margin Strength Offset Demand Challenges at Home Depot?

The Home Depot Inc.’s HD first-quarter fiscal 2026 results suggest that the home improvement giant may be showing early signs of stabilization, even as housing-market headwinds persist. In the quarter, sales increased 4.8% year over year to $41.8 billion, while comparable sales rose 0.6%, marking a return to positive comps growth. Although adjusted earnings per share (EPS) declined 3.7% to $3.43, management emphasized that results were in line with expectations and reflected a demand environment similar to that seen throughout fiscal 2025.
A notable positive was the resilience of Home Depot’s Pro business, which outperformed DIY customers in the fiscal first quarter. The company also reported positive comparable sales in nine of its 16 merchandising departments, including power, plumbing, paint and electrical. Big-ticket transactions above $1,000 increased 0.8%, though larger discretionary projects remained pressured by elevated interest rates and housing affordability challenges.
Strategic investments continue to support Home Depot’s long-term growth outlook. Online sales grew more than 10% year over year, marking the fourth consecutive quarter of double-digit digital growth. The company is also expanding its Pro ecosystem through acquisitions such as Mingledorff’s and leveraging SRS Distribution to deepen its presence in specialty trade categories, including roofing, HVAC and building materials. These initiatives are designed to capture a larger share of the $700-billion Pro market and drive sustained market-share gains.
While management does not expect a significant improvement in underlying demand this year, it reaffirmed its fiscal 2026 guidance and expects comparable sales growth of flat to 2%, alongside earnings growth of flat to 4%. With positive comps, strong Pro momentum and continued strategic execution, Home Depot appears positioned for a gradual earnings recovery as market conditions normalize.
How Are Peers Like LOW & WSM Catching Up?
While Home Depot continues to strengthen its Pro and omnichannel strategies, peers Lowe’s Companies Inc. LOW and Williams-Sonoma Inc. WSM are executing initiatives aimed at driving market share gains and narrowing the competitive gap.
Lowe’s fiscal 2026 outlook shows early signs of stabilization, supported by positive comps, Pro momentum and digital gains. In first-quarter fiscal 2026, sales rose 10.3% to $23.1 billion, comps increased 0.6% and adjusted EPS grew 3.8% to $3.03. Management reaffirmed its fiscal 2026 guidance for sales of $92-$94 billion, flat to 2% comps and an adjusted EPS of $12.25-$12.75 despite DIY softness and housing pressures.
Williams-Sonoma’s fiscal 2026 outlook reflects sustained momentum rather than a turnaround story. The company delivered 4.8% comparable-brand revenue growth, a 16.2% operating margin and 4% EPS growth in the first quarter of fiscal 2026, driven by strength across all brands, channels and product categories. Management reaffirmed its fiscal 2026 guidance for 2-6% comps growth and operating margin of 17.5-18.1%, citing market-share gains, product innovation, supply-chain efficiencies and disciplined cost management despite housing-market and macroeconomic uncertainty.
HD’s Price Performance, Valuation & Estimates
Shares of Home Depot have lost 6.9% in the past six months versus the industry’s decline of 8.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 21.25X compared with the industry’s average of 19.67X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HD’s fiscal 2026 and fiscal 2027 EPS implies year-over-year growth of 2.2% and 8%, respectively. The company’s EPS estimates for fiscal 2026 and 2027 have moved down 0.3% and 0.9%, respectively, in the past 30 days.
Image Source: Zacks Investment Research
Home Depot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Home Depot's FY26 Earnings Outlook: Signs of a Turnaround?

The Home Depot Inc.’s HD recent expansion strategy appears to be more about building scale than simply buying growth. While acquisitions such as SRS, GMS and most recently Mingledorff’s have contributed to incremental revenues, management repeatedly emphasized how these businesses strengthen Home Depot’s long-term position in the professional contractor (Pro) market rather than providing short-term sales gains.
The acquisition of Mingledorff’s, a leading HVAC distributor in the southeastern United States, illustrates this strategy. Management highlighted that the deal expands Home Depot’s reach into the approximately $100-billion HVAC distribution market and increases its total addressable market to $1.2 trillion. Mingledorff’s complements SRS’s existing operations and enhances Home Depot’s ability to serve professional customers through specialized products, distribution capabilities and customer relationships.
Home Depot’s broader vision centers on creating a differentiated Pro ecosystem. Through its network of more than 2,360 stores, 1,300 SRS branches, 325 warehouses, 16,000 delivery assets and a sales force of more than 5,000 associates, the company is building an integrated platform that competitors will struggle to replicate. Management highlighted that the real value of these acquisitions extends beyond their individual performance, as they enable Home Depot to drive cross-selling, expand customer wallet share and capitalize on its enterprise-wide logistics, sales and distribution capabilities to strengthen its position in the Pro market.
Although these acquisitions support revenue growth, Home Depot views them primarily as strategic building blocks that strengthen its competitive advantage in a fragmented Pro market. The company’s focus on scale, distribution reach and service capabilities suggests that its expansion play is less about acquiring immediate growth and more about creating a comprehensive platform capable of delivering sustained market share gains over the long term.
How Are Peers Like LOW & WSM Catching Up?
While Home Depot is expanding through acquisitions and Pro-focused investments, peers such as Lowe’s Companies Inc. LOW and Williams-Sonoma Inc. WSM are pursuing their strategies to narrow the competitive gap and capture a larger share of home improvement and home furnishing demand.
Lowe’s expansion strategy is centered on building scale rather than pursuing growth through acquisitions alone. Management highlighted that the acquisitions of FBM and ADG are designed to establish an “interior solutions platform” serving the residential and commercial construction markets, expanding Lowe’s addressable market into new-home and multifamily construction. Beyond cost synergies, the company is focused on cross-selling opportunities, Pro Extended Aisle capabilities and deeper penetration of the professional customer segment, positioning Lowe’s to capture share when housing activity recovers.
Williams-Sonoma’s expansion strategy is firmly focused on building scale through organic growth rather than acquisitions. Management highlighted growth across all brands, strong momentum in B2B, emerging brands such as Rejuvenation and Mark and Graham, and selective store expansion at West Elm. The company is leveraging AI, supply-chain efficiencies, personalization and brand innovation to deepen customer engagement and gain market share. Rather than buying growth, Williams-Sonoma is scaling its existing ecosystem to drive sustainable long-term expansion.
HD’s Price Performance, Valuation & Estimates
Shares of Home Depot have lost 10.2% in the past six months versus the industry’s decline of 14.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 20.81X compared with the industry’s average of 18.53X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HD’s fiscal 2026 and fiscal 2027 earnings per share (EPS) implies year-over-year growth of 2.3% and 8%, respectively. The company’s EPS estimates for fiscal 2026 and 2027 have moved down 0.3% and 0.9%, respectively, in the past 30 days.
Image Source: Zacks Investment Research
Home Depot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Home Depot's Expansion Play: Building Scale or Growth Story?

RH RH is scheduled to report its first-quarter fiscal 2026 (ended May 2, 2026) results on June 11, after the closing bell.
In the last reported quarter, the company’s adjusted earnings per share of $1.53 missed the Zacks Consensus Estimate of $2.21 by 30.8%. The reported figure decreased slightly by 3.2% from $1.58 in the year-ago period. Net revenues of $842.6 million also lagged the consensus mark of $872 million but improved 3.7% year over year.
RH’s earnings surpassed estimates in only one of the trailing four quarters and missed on the other three occasions, but the average surprise was positive 46.5%.
How Are Estimates Placed for RH Stock?
The Zacks Consensus Estimate for the fiscal first quarter indicates a loss of $2.07 per share, which has remained unchanged over the past 30 days. In the year-ago period, the company reported earnings of 13 cents per share.
The consensus estimate for revenues is pegged at $791.6 million, indicating a 2.7% year-over-year decline.
RH Price and EPS Surprise
Factors Likely to Have Shaped RH’s Q1 Performance
Assessing the Sales Environment: RH’s fiscal first-quarter revenue performance is likely to have been pressured by continued weakness in the U.S. housing market, which management has described as one of the most difficult environments in decades for home-related spending. Elevated mortgage rates and macroeconomic uncertainty may have weighed on furniture demand, particularly for larger discretionary purchases. Management guided for first-quarter fiscal 2026 revenue growth of negative 2% to negative 4%, reflecting expectations for a soft demand environment.
Despite these headwinds, several company-specific initiatives may have provided support. RH entered fiscal 2026 with momentum from market-share gains and revenue growth that outpaced many industry peers. The company continued to benefit from its luxury positioning, expansive gallery network and integrated hospitality model, which help drive customer engagement and brand awareness. Management also remained optimistic about growth opportunities tied to new gallery concepts and international expansion efforts.
However, the quarter is likely to have seen limited contribution from RH Estates, the company’s new traditional luxury furnishings concept. Management indicated that major launch activities would occur during the second quarter, with meaningful revenue benefits expected later in the year.
Factors Affecting Profitability: Profitability is expected to have remained under pressure during the quarter. RH forecasted a fiscal first-quarter adjusted EBITDA margin of 5.5% to 6.5%, substantially below its longer-term targets. A major factor is the elevated level of pre-opening and startup expenses tied to international expansion initiatives, including RH Milan and RH London. Management estimated that these costs alone would reduce first-quarter adjusted EBITDA margin by roughly 420 basis points.
Tariff-related costs and supply-chain adjustments are likely to have been another challenge. During the fourth-quarter earnings discussion, management noted that tariff-related sourcing transitions had already created operational disruptions and margin pressure. Continued investments in global expansion, product development and the upcoming RH Estates launch were also expected to weigh on earnings in the near term.
Overall, RH’s fiscal first-quarter results are expected to reflect a balance between near-term macroeconomic pressures and substantial investments intended to strengthen the company’s long-term growth platform.
What the Zacks Model Says for RH
Our proven model does not conclusively predict an earnings beat for RH this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Williams-Sonoma’s WSM first-quarter fiscal 2026 earnings topped the Zacks Consensus Estimate by 7.2%, while net revenues met the same at $1.81 billion. Year over year, both metrics grew 4.3% and 4.4%, respectively, owing to the broad-based comparable growth across brands and channels and steady earnings delivery.
For fiscal 2026, WSM expects annual net revenues to increase in the range of 2.7-6.7%, with comparable brand revenue growth (comps) in the range of 2-6%. WSM also continues to project an operating margin between 17.5% and 18.1% for the year.
Lowe’s LOW reported first-quarter fiscal 2026 results, wherein both earnings and sales surpassed the Zacks Consensus Estimate. Adjusted earnings were $3.03 per share, rising 3.8% year over year and beating the Zacks Consensus Estimate of $2.96 by 2.4%. Net sales came in at $23.1 billion, rallying 10.3% from the year-ago quarter and surpassing the consensus mark of $22.9 billion by 0.6%.
Lowe’s reaffirmed its fiscal 2026 guidance and expects total sales between $92 billion and $94 billion, indicating year-over-year growth of 7-9%. Comparable sales are anticipated to be flat to up 2%. The company expects the adjusted operating margin to be 11.6-11.8%. Lowe’s expects EPS of $11.75-$12.25 and adjusted EPS of $12.25-$12.75.
The Home Depot Inc.’s HD first-quarter fiscal 2026 top and bottom lines outpaced the Zacks Consensus Estimate. Adjusted earnings were $3.43 per share, down 3.7% from the year-ago quarter but beat the consensus mark of $3.40. Net sales rose 4.8% year over year to $41.77 billion and topped the consensus estimate of $41.49 billion.
Home Depot reaffirmed its fiscal 2026 framework, calling for total sales growth of approximately 2.5-4.5% and comparable sales growth of roughly flat to 2%. The company also expects to open about 15 stores this year. HD anticipates EPS growth of approximately flat to 4% from $14.23 in fiscal 2025.
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RH (RH) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

RH Set to Report Q1 Earnings: What Should Investors Expect?

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Williams Sonoma Inc (Symbol: WSM) has taken over the #341 spot from Regions Financial Corp (Symbol: RF), according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of Williams Sonoma Inc (Symbol: WSM), the market cap is now $24.39 billion, versus Regions Financial Corp (Symbol: RF) at $23.38 billion.
Below is a chart of Williams Sonoma Inc versus Regions Financial Corp plotting their respective size rank within the S&P 500 over time (WSM plotted in blue; RF plotted in green):
Below is a three month price history chart comparing the stock performance of WSM vs. RF:
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
Examine the full WSM market cap history vs. the full RF market cap history.
At the closing bell, WSM is up about 0.5%, while RF is up about 3.8% on the day Thursday.
Further WSM Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	20.29 19.50
Price/Sales	3.62 0.68
P/B	14.68 1.79
P/FCF	22.03 14.32

Indicator	TTM Median
ROE	53.31 14.96
ROA	20.73 4.87
ROI	0.00 8.60
Net Worth	27.95 0.87
Quick Ratio	0.51 0.86
Current Ratio	1.33 1.40

Indicator	TTM Median
Net Profit Margin	13.82 5.77
Operating Margin	17.98 8.17
Gross Margin	46.07 39.42
Return on tangible equity	55.42 21.16

Indicator	TTM Median
EPS	1.93 0.49
EPS Forecast	1.80 0.46
Revenue	1.81B 192.50M
Gross Profit	793.00M —
EBITDA	348.00M —

Williams-Sonoma, Inc.

Recent quarterly and TTM performance

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