What’s Happening With Sleep Number’s Stock?

by Trefis Team
Rate   |   votes   |   Share

Sleep Number Corp’s stock (NASDAQ: SNBR), a company designing and manufacturing adjustable-firmness mattresses, has declined by almost 8% over the last five trading days (one week) and currently stands at around $123 (vs. about a 2% growth in the S&P 500). The company benefited from the extended period of remote work, as people focused on wellness purchases during the pandemic. Consequently, its full-year 2020 revenues grew around 9% year-over-year (y-o-y) to $1.9 billion. In addition, it saw a large 81% y-o-y improvement on earnings per share to $5.03, during this period.

Sleep Number stock has skyrocketed more than 5x from around $24 since bottoming out in March 2020. In fact, the stock is also up more than 2x from its pre-pandemic February highs of roughly $56. Now, is SNBR stock poised to decline further after falling 7.6% since last week? We believe the company remains fundamentally undervalued given its recent strong financial performance, and the company’s stock could see more gains going forward. Specifically, there is a 53% chance of a rise in Sleep Number’s stock over the next month (twenty-one trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on Sleep Number‘s Stock Chances of Rise for more details.

Five Days: SNBR -7.6%, vs. S&P500 1.8%; Underperformed market (8% likelihood event)

  • Sleep Number stock declined 7.6% over a five-day trading period, compared to broader market (S&P500) rise of 1.8%
  • A change of -7.6% or more over five trading days is an 8% likelihood event, which has occurred 205 times out of 2516 in the last ten years

Ten Days: SNBR -9.7%, vs. S&P500 4.5%; Underperformed market (10% likelihood event)

  • Sleep Number stock declined 9.7% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 4.5%
  • A change of -9.7% or more over ten trading days is a 10% likelihood event, which has occurred 245 times out of 2511 in the last ten years

Twenty-One Days: SNBR -14%, vs. S&P500 5.2%; Underperformed market (11% likelihood event)

  • Sleep Number stock declined 14% the last twenty-one trading days (one month), compared to broader market (S&P500) rise of 5.2%
  • A change of -14% or more over twenty-one trading days is an 11% likelihood event, which has occurred 281 times out of 2500 in the last ten years

E-commerce is eating into retail sales, but this might be an investment opportunity. See our theme on E-commerce Stocks for a diverse list of companies that stand to benefit from the big shift.

See all Trefis Price Estimates and Download Trefis Data here

What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams

Rate   |   votes   |   Share

Comments

Name (Required)
Email (Required, but never displayed)
Be the first to comment!