Sonos (SONO) Outpaces Stock Market Gains: What You Should Know
Sonos (SONO) closed the most recent trading day at $34.79, moving +1.13% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.09%.
Prior to today's trading, shares of the maker of wireless speakers and home sound systems had gained 12.75% over the past month. This has outpaced the Consumer Discretionary sector's gain of 2.84% and the S&P 500's gain of 8.19% in that time.
Investors will be hoping for strength from SONO as it approaches its next earnings release, which is expected to be November 17, 2021. In that report, analysts expect SONO to post earnings of -$0.07 per share. This would mark a year-over-year decline of 146.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $351.56 million, up 3.45% from the year-ago period.
Investors might also notice recent changes to analyst estimates for SONO. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.79% higher. SONO is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, SONO currently has a Forward P/E ratio of 29.4. For comparison, its industry has an average Forward P/E of 14.09, which means SONO is trading at a premium to the group.
Also, we should mention that SONO has a PEG ratio of 0.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Audio Video Production stocks are, on average, holding a PEG ratio of 1.23 based on yesterday's closing prices.
The Audio Video Production industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.
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