Past performance isn't a guarantee of future returns in the stock market, but it is a good indicator. Winners tend to keep on winning in the stock market, after all, and outperformance isn't usually an accident. It comes from having a set of competitive advantages that give a company pricing power and allow for strong growth, as well as a skilled management team and a product that customers want.
Shares of Williams-Sonoma and Restoration Hardware are both down after receiving downgrades from Barclays due to the weakening housing cycle.
Yahoo Finance Live anchors discuss a Barclays analyst's decision to downgrade Williams-Sonoma and RH stocks to Equal Weight from Overweight as home goods spending slows.