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Is Sleep Number (SNBR) a Great Value Stock Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Sleep Number (SNBR - Free Report) is a stock many investors are watching right now. SNBR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SNBR has a P/S ratio of 0.17. This compares to its industry's average P/S of 0.47.
Finally, investors will want to recognize that SNBR has a P/CF ratio of 8.10. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SNBR's P/CF compares to its industry's average P/CF of 13.21. Over the past year, SNBR's P/CF has been as high as 10.51 and as low as 2.70, with a median of 5.29.
Value investors will likely look at more than just these metrics, but the above data helps show that Sleep Number is likely undervalued currently. And when considering the strength of its earnings outlook, SNBR sticks out at as one of the market's strongest value stocks.
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Is Sleep Number (SNBR) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Sleep Number (SNBR - Free Report) is a stock many investors are watching right now. SNBR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SNBR has a P/S ratio of 0.17. This compares to its industry's average P/S of 0.47.
Finally, investors will want to recognize that SNBR has a P/CF ratio of 8.10. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SNBR's P/CF compares to its industry's average P/CF of 13.21. Over the past year, SNBR's P/CF has been as high as 10.51 and as low as 2.70, with a median of 5.29.
Value investors will likely look at more than just these metrics, but the above data helps show that Sleep Number is likely undervalued currently. And when considering the strength of its earnings outlook, SNBR sticks out at as one of the market's strongest value stocks.