Back to top

Image: Bigstock

Sleep Number (SNBR) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Sleep Number (SNBR - Free Report) closed the most recent trading day at $49.75, moving -0.72% from the previous trading session. This change lagged the S&P 500's 1.54% gain on the day. Elsewhere, the Dow gained 1.59%, while the tech-heavy Nasdaq added 0.98%.

Prior to today's trading, shares of the seller of beds, mattresses and bedding products had gained 8.09% over the past month. This has lagged the Consumer Discretionary sector's gain of 9.81% and outpaced the S&P 500's gain of 8% in that time.

Investors will be hoping for strength from SNBR as it approaches its next earnings release. The company is expected to report EPS of $1, up 6.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $525.80 million, up 10.75% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.77 per share and revenue of $1.76 billion. These totals would mark changes of +2.59% and +3.75%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for SNBR. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SNBR currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, SNBR currently has a Forward P/E ratio of 18.08. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 18.08.

Investors should also note that SNBR has a PEG ratio of 1.79 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNBR's industry had an average PEG ratio of 1.72 as of yesterday's close.

The Furniture industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Sleep Number Corporation (SNBR) - free report >>

Published in