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Why Williams-Sonoma Investors are Enjoying Success in 2023

By:
Lucas Downey
Published: Nov 19, 2023, 10:06 GMT+00:00

Williams-Sonoma, Inc. (WSM) shares surged after earnings recently. But the rally has been in place all year with 56% gains in 2023. When you review the money flow clues, it’s obvious why.

Nasdaq, FX Empire

In this article:

Williams-Sonoma Shares Attract Big Money Inflows

Want an edge in trading? Follow the Big Money.

What’s Big Money? Said simply, it’s when a stock rises due to institutional demand. Top stocks tend to attract savvy investors.

You see, fund managers are always looking to bet on the next outperforming stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

The 1-year action tells the story. Each green bar signals unusual increasing volumes in WSM shares, pushing the stock higher. We believe this to be institutional demand:

Source: www.mapsignals.com

While the chart may appear choppy, few stocks have recurring demand this strong. Recent green bars suggest healthy new inflows. But, what about the fundamental story?

Williams-Sonoma Fundamental Analysis

Next, I want to make sure the fundamental story is healthy too. As you can see, WSM has had positive sales & earnings growth in recent years:

  • 3-year sales growth rate (+13.9%)
  • 3-year EPS growth rate (+58.2%)

Source: FactSet

Marrying great fundamentals with our proprietary Big Money software has found some big winning stocks over the long-term.

Check this out. WSM has been a top-rated stock at MAPsignals. That means the stock has had buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report. The blue bars below shows when WSM was a top pick:

Source: www.mapsignals.com

Tracking unusual volumes reveals the power of the MAPsignals process.

Don’t fight the Big Money!

Williams-Sonoma Price Prediction

The WSM rally has been in place all year. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in WSM at the time of publication.

If you want to take your investing to the next level, learn more about the MAPsignals process here.

Follow our free insights here.

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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