Why Williams-Sonoma Inc. (WSM) Went Down On Thursday?

We recently published a list of Pulse of the Market: Wednesday’s 10 Worst Performers. In this article, we are going to take a look at where Williams-Sonoma Inc. (NYSE:WSM) stands against other Wednesday’s worst performers.

Shares on Wall Street bounced back from a bloodbath, with all main indices ending in the green on Wednesday, as investors cheered the Federal Reserve’s decision to keep interest rates unchanged.

The tech-heavy Nasdaq led the gains, rallying 1.41 percent, followed by the S&P 500 with a 1.08 percent gain, and the Dow Jones, by 0.92 percent.

Meanwhile, 10 companies defied overall market optimism, booking losses during the trading session. In this article, let’s take a look at the 10 worst-performing stocks and explore the reasons behind their drop.

To come up with the list, we considered only the companies with a $2-billion market capitalization and $5 million in trading volume.

An interior of a modern home with a wide selection of cookware, tools and cutlery on display.

Williams-Sonoma Inc. (NYSE:WSM)

Williams-Sonoma dropped for a second day on Wednesday, losing 3.49 percent to finish at $166.27 each as investors sold off positions following a cautious outlook for its business.

WSM, which operates home furnishing stores such as Pottery Barn, and West Elm, among others, said that it expects full-year revenues to land in the range of plus or minus 1.5 percent, with a flat same-store sales growth (SSSG).

Meanwhile, Wall Street analysts expect sales to grow a bit better, with SSSG of 1.53 percent.

The bearish outlook overshadowed the company’s impressive earnings performance during the last quarter of the year, having booked revenues of $2.46 billion versus the $2.35 billion estimated by analysts.

“We have been, and will continue to be, focused on returning to growth,” said WSM CEO Laura Alber in a statement.

Overall, WSM ranks 8th on our list of Wednesday’s worst performers. While we acknowledge the potential of WSM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as WSM but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.