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

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Sonos (SONO - Free Report) closed at $25.57 in the latest trading session, marking a +1.39% move from the prior day. This move outpaced the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq gained 0.28%.

Coming into today, shares of the maker of wireless speakers and home sound systems had lost 16.1% in the past month. In that same time, the Consumer Discretionary sector lost 8.66%, while the S&P 500 lost 5.29%.

Sonos will be looking to display strength as it nears its next earnings release, which 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

Any recent changes to analyst estimates for Sonos should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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.

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 is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Sonos's current valuation metrics, including its Forward P/E ratio of 19.51. This valuation marks a premium compared to its industry's average Forward P/E of 12.61.

Meanwhile, SONO's PEG ratio is currently 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SONO's industry had an average PEG ratio of 1.35 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 170, which puts it in the bottom 34% 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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