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Sonos (SONO) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Sonos (SONO) closed at $23.43, marking a +1.74% move from the previous day. This change outpaced the S&P 500's 0.28% gain on the day. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 0.19%.

Prior to today's trading, shares of the maker of wireless speakers and home sound systems had lost 22.98% over the past month. This has lagged the Consumer Discretionary sector's loss of 9.68% and the S&P 500's loss of 5.39% in that time.

Wall Street will be looking for positivity from Sonos as it approaches its next earnings report date. This is expected to be February 9, 2022. The company is expected to report EPS of $0.90, down 23.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $647.17 million, up 0.25% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.29 per share and revenue of $1.95 billion, which would represent changes of -27.12% and +13.77%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Sonos. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Sonos is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Sonos is holding a Forward P/E ratio of 17.82. This valuation marks a premium compared to its industry's average Forward P/E of 13.47.

We can also see that SONO currently has a PEG ratio of 1.05. 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 Audio Video Production industry currently had an average PEG ratio of 1.3 as of yesterday's close.

The Audio Video Production industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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