Williams Sonoma WSM stock news and analysis


The security could also benefit from a short squeeze

Williams-Sonoma, Inc. (NYSE:WSM) stock has distanced itself from its Jan. 24, two-year high of $212.52, though it was last seen up 1.9% at $197.02. Shares still boast a 40.9% year-over-year lead, too, while support from the $190 level looks ready to keep any additional losses in check, as it did back in January and December. Plus, WSM’s latest dip has placed it close to a historically bullish trendline that could help it move higher once again.

 

According to data from Schaeffer’s Senior Quantitative Analyst Rocky White, Williams-Sonoma stock is within one standard deviation of its 60-day trendline. The security saw six similar signals in the last three years, defined for this study as having traded north of this trendline 80% of the time in the last two months, and in eight of the past 10 trading days.

 

WSM 60 Dya

 

Shares moved higher one month later in 67% of those instances, with an average 9.5% gain. A move of similar magnitude from its current perch would place WSM above $215 for the first time since November 2021.

 

The security also looks ripe for a short squeeze. The 7.30 million shares sold short now account for 12.2% of WSM’s available float, or more than seven days’ worth of pent-up buying power.

 

There’s room for shift in analyst sentiment in the forms of upgrades and/or price-target hikes, too. In fact, 15 of the 20 firms in coverage call the security a tepid “hold” or worse, while the 12-month consensus target price of $180.17 is an 8.5% discount to current levels.



Image and article originally from www.schaeffersresearch.com. Read the original article here.