I love to cook.
After a hard day at work, it’s relaxing to mix ingredients, concoct new recipes and watch my family enjoy what I have created.
I’m not a Top Chef by any stretch of the imagination. But I get a lot out of cooking.
During the COVID-19 pandemic, eating at home became the new normal.
I learned the value of cooking and sitting together as a family for dinner.
Because I spend a lot of time in the kitchen, I am pretty picky about the pots, pans and utensils I use.
And that led me to today’s stock.
It rates a 96 overall on Adam O’Dell’s six-factor Green Zone Ratings system.
It rates high on quality (97), growth (97) and momentum (93).
Pro tip No. 1: This stock was one of the highest-rated stocks in our weekly hotlist. To find out more about our weekly hotlist, click here.
And the housewares buying trend is going to send this stock even higher in the coming months and years.
Trendspotting: Housewares Sales Move Higher
We’re always looking for ways to improve our home.
I just bought a new desk online, assembled it over the weekend and am using it today.
I also love to find new and improved cookware and kitchen gadgets.
Housewares E-Commerce Revenue to Hit $61.2 Billion
And we’re going to spend even more on things like kitchen wares and furniture in the coming years.
In 2020, Americans spent $52.6 billion in that market.
That’s projected to increase to $61.2 billion by the end of 2025 — a 16.3% jump in just five years.
And that’s just online shopping. It doesn’t account for shopping in stores.
Housewares Stocks and Retailers Set to Soar Post-COVID
That’s where the housewares stock Williams-Sonoma Inc. (NYSE: WSM) comes in.
It sells cookware, tools, cutlery, furniture and other home furnishings.
It has about 21,000 employees across its 614 stores in the U.S., Puerto Rico, Canada, Australia and the U.K.
The company operates e-commerce websites in all of those countries as well as the Middle East, the Philippines, Mexico and South Korea.
Over the last four years, Williams-Sonoma has consistently grown its total revenue — even amid the COVID-19 pandemic.
WSM Revenue to Jump 25% by 2025
Its total revenue jumped just 16% from 2017 to 2020, but it’s expected to take off in the coming years.
In 2020, the company reported total revenue of $5.9 billion.
By 2025, its total revenue is projected to top $7.4 billion — a 25% increase from 2020.
Williams-Sonoma’s net income went from $305 million in 2017 to $356 million in 2020 — a modest 16% gain.
But by 2025, the company’s net income is expected to reach $783 million — a 120% boom from 2020.
Financially, Williams-Sonoma couldn’t be on better footing.
WSM Jumps Nearly 400% Off March 2020 Lows
WSM hit a low of $35.50 per share at the height of the COVID-19 crash in March 2020.
It has since rebounded nearly 400% to its current price of around $175 per share.
In the last 12 months, the stock price has rocketed up 265% compared to the average gain of the home improvement retail sector (89%).
Adam’s six-factor Green Zone Ratings system shows WSM with a 96 overall — meaning it’s in the top 4% of all stocks we rate.
Williams-Sonoma Inc.’s Green Zone Rating on April 12, 2021.
It also means we are “Strong Bullish” on the stock and expect it to beat the broader market by three times over the next 12 months.
The company earns a 97 on growth.
It has a one-year annual sales growth rate of 15% and a 91.5% annual earnings-per-share growth rate.
With returns on assets, equity and investment in the double digits and better than the industry average, Williams-Sonoma rates a 97 on quality.
As you can see from its stock chart above, the stock price is in a strong upward trend, giving it a 93 on momentum.
It also rates in the green on value (81) and volatility (73).
Williams-Sonoma does rate a 19 on size due to its $14 billion market cap.
Pro tip No. 2: If you are curious about how to use Green Zone Ratings to find out how 8,000+ rate in our system, we’ve got you covered. Click here to watch my brand-new tutorial, and start looking up some of your favorite stocks today!
The bottom line: Williams-Sonoma is already a leader when it comes to housewares.
As we return to normal from the COVID-19 pandemic, we’re going to keep improving our surroundings.
That’s why Williams-Sonoma Inc. is a housewares stock worth considering for your portfolio.
Safe trading,
Matt Clark
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He’s the host of our podcast, The Bull & The Bear, as well as the Marijuana Market Update. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.
