This sleep-focused company has risen nicely and is getting near sell territory.
Sleep Number Corporation (SNBR)
From Cabot Undervalued Stocks Advisor
Sleep Number Corporation (SNBR) is the leader in sleep innovation, and a designer,
manufacturer, marketer, retailer and servicer of a line of Sleep Number beds, bases and
bedding accessories.
Revenue has increased consistently from $960 million in 2013 to an expectation of $1.6 billion in 2019. Wall street projects EPS to increase 27.6% and 15.5% in 2019 and 2020. The 2019 P/E is 16.1.
In light of the slowing earnings growth rate, I now consider the stock to be fully valued. Sleep Number is a volatile, micro-cap stock. The stock rose 54% year-to-date through mid-April, then gave back almost all its gains, and is now rising, up 24% year-to-date at $39.50.
Traders should use stop-loss orders and consider exiting the stock in the upper 40’s.
Crista Huff, Cabot Undervalued Stocks Advisor, www.cabotwealth.com, 978-745-5532, June 21, 2019