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Strength Seen in Sleep Number (SNBR): Can Its 19.1% Jump Turn into More Strength?

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Sleep Number (SNBR - Free Report) shares soared 19.1% in the last trading session to close at $10.28. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 28.6% loss over the past four weeks.

The stock might have got a boost on the expectation of potential interest rate cut in September, per the CME FedWatch tool.

This seller of beds, mattresses and bedding products is expected to post quarterly loss of $0.44 per share in its upcoming report, which represents a year-over-year change of -1566.7%. Revenues are expected to be $412.4 million, down 10.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Sleep Number, the consensus EPS estimate for the quarter has been revised 3.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SNBR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Sleep Number is part of the Zacks Furniture industry. Legget & Platt (LEG - Free Report) , another stock in the same industry, closed the last trading session 3.8% higher at $12.58. LEG has returned 4.1% in the past month.

For Legget & Platt, the consensus EPS estimate for the upcoming report has changed -1.6% over the past month to $0.29. This represents a change of -23.7% from what the company reported a year ago. Legget & Platt currently has a Zacks Rank of #4 (Sell).


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