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Sleep Number (SNBR) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3 mins read

In the latest trading session, Sleep Number (SNBR) closed at $47.64, marking a +0.87% move from the previous day. The stock lagged the S&P 500's daily gain of 1.6%. At the same time, the Dow added 1.34%, and the tech-heavy Nasdaq gained 2.26%.

Heading into today, shares of the seller of beds, mattresses and bedding products had gained 1.74% over the past month, outpacing the Consumer Discretionary sector's loss of 1.59% and the S&P 500's loss of 5.3% in that time.

SNBR will be looking to display strength as it nears its next earnings release. On that day, SNBR is projected to report earnings of $1.01 per share, which would represent year-over-year growth of 7.45%. Our most recent consensus estimate is calling for quarterly revenue of $527.95 million, up 11.2% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.80 per share and revenue of $1.77 billion, which would represent changes of +3.7% and +4.16%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for SNBR. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.94% higher within the past month. SNBR is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that SNBR has a Forward P/E ratio of 16.88 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 16.88.

Also, we should mention that SNBR has a PEG ratio of 1.67. 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 1.67 as of yesterday's close.

The Furniture industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

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