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

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In the latest trading session, Sleep Number (SNBR) closed at $137.60, marking a +0.2% move from the previous day. This change outpaced the S&P 500's 1.48% loss on the day. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 3.02%.

Coming into today, shares of the seller of beds, mattresses and bedding products had gained 14.42% in the past month. In that same time, the Consumer Discretionary sector gained 4.9%, while the S&P 500 gained 1.23%.

Investors will be hoping for strength from SNBR as it approaches its next earnings release. In that report, analysts expect SNBR to post earnings of $1.79 per share. This would mark year-over-year growth of 31.62%. Meanwhile, our latest consensus estimate is calling for revenue of $578.85 million, up 22.49% from the prior-year quarter.

SNBR's full-year Zacks Consensus Estimates are calling for earnings of $6.10 per share and revenue of $2.16 billion. These results would represent year-over-year changes of +24.49% and +16.53%, respectively.

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

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 32.72% higher. SNBR is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, SNBR currently has a Forward P/E ratio of 22.51. Its industry sports an average Forward P/E of 19.81, so we one might conclude that SNBR is trading at a premium comparatively.

Investors should also note that SNBR has a PEG ratio of 1.76 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Furniture was holding an average PEG ratio of 1.77 at yesterday's closing price.

The Furniture industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 112, putting it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow SNBR in the coming trading sessions, be sure to utilize Zacks.com.

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