Sleep Number (SNBR) closed the most recent trading day at $46.80, moving +0.58% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.56%. Meanwhile, the Dow lost 1.39%, and the Nasdaq, a tech-heavy index, added 0.53%.
Prior to today's trading, shares of the seller of beds, mattresses and bedding products had gained 17.44% over the past month. This has outpaced the Consumer Discretionary sector's loss of 4.73% and the S&P 500's loss of 1.79% in that time.
Investors will be hoping for strength from SNBR as it approaches its next earnings release, which is expected to be July 15, 2020. In that report, analysts expect SNBR to post earnings of -$0.81 per share. This would mark a year-over-year decline of 910%. Meanwhile, our latest consensus estimate is calling for revenue of $230.62 million, down 35.21% from the prior-year quarter.
SNBR's full-year Zacks Consensus Estimates are calling for earnings of $1.58 per share and revenue of $1.52 billion. These results would represent year-over-year changes of -41.48% and -10.52%, respectively.
Investors should also note any recent changes to analyst estimates for SNBR. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 3.96% higher. SNBR is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that SNBR has a Forward P/E ratio of 29.54 right now. Its industry sports an average Forward P/E of 26.55, so we one might conclude that SNBR is trading at a premium comparatively.
Investors should also note that SNBR has a PEG ratio of 2.93 right now. 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. The Furniture industry currently had an average PEG ratio of 2.93 as of yesterday's close.
The Furniture industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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