Can Sleep Number Stock Rebound After a 5% Fall?

Sleep Number Corp’s stock (NASDAQ: SNBR), a company designing and manufacturing adjustable-firmness mattresses, has declined 5% in the last twenty-one trading days (one month). In comparison, the broader S&P500 index increased 4% over the same period. The company is known for its differentiated product in the market known as Sleep Number 360 mattress. This product is sold by the company as the first smart bed and continues to gain popularity for customers seeking a high-tech luxury bedding solution. That said, SNBR benefited from the extended period of remote work in fiscal 2021 so far, as people focused on wellness purchases during this period. Consequently, its fiscal first half 2021 revenues grew strongly, around 39% year-over-year (y-o-y), and also 35% from the pre-pandemic first half. In addition, it also saw a large 3.6x improvement in earnings per share during the same period on a two-year basis. While Sleep Number stock is up 12% year-to-date, it has declined in the last month on the growing concerns of supply chain constraints dragging down operations in the months of June and July. 

Now, is SNBR stock poised to grow? Based on our machine learning analysis of trends in the stock price over the last ten years, there is a 53% chance of a rise in SNBR stock over the next month (twenty-one trading days). See our analysis on SNBR Stock Chance Of Rise for more details. And if you are considering SNBR’s stock as an investment option over a longer time frame, you can also explore SNBR’s Net Income Comparison against its peers and history.

[1] Returns of -2.5% or lower during five-day period in 603 times out of 2516; Stock rose in the next five days in 342 of these 603 instances

[2] Returns of -3.5% or lower during ten-day period in 608 times out of 2516; Stock rose in the next ten days in 315 of these 608 instances

[3] Returns of -5.4% or lower during twenty-one-day period in 697 times out of 2516; Stock rose in the next twenty-one days in 367 of these 697 instances

There are several stocks in S&P500 that look like a Better Bet Than SNBR stock. Also, Sleep Number Peer Comparisons summarizes how the company fares against peers on metrics that matter.

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