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Sonos (SONO) closed the most recent trading day at $26.71, moving -0.26% from the previous trading session. This change was narrower than the S&P 500's 0.27% loss on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.18%.
Heading into today, shares of the maker of wireless speakers and home sound systems had gained 8.38% over the past month, outpacing the Consumer Discretionary sector's gain of 3.51% and the S&P 500's gain of 7.36% in that time.
Wall Street will be looking for positivity from Sonos as it approaches its next earnings report date. In that report, analysts expect Sonos to post earnings of $0.04 per share. This would mark a year-over-year decline of 87.1%. Our most recent consensus estimate is calling for quarterly revenue of $361.4 million, up 8.55% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.23 per share and revenue of $1.98 billion. These totals would mark changes of -30.51% and +15.37%, respectively, from last year.
Any recent changes to analyst estimates for Sonos should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Sonos currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Sonos is holding a Forward P/E ratio of 21.77. Its industry sports an average Forward P/E of 11.06, so we one might conclude that Sonos is trading at a premium comparatively.
It is also worth noting that SONO currently has a PEG ratio of 1.51. 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 Audio Video Production was holding an average PEG ratio of 1.51 at yesterday's closing price.
The Audio Video Production industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 234, putting it in the bottom 8% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Sonos, Inc. (SONO) : Free Stock Analysis Report
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