Sonos (SONO) is a Top-Ranked Momentum Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in the stock market [1] - The Zacks Style Scores are designed to complement the Zacks Rank, providing additional metrics for stock selection based on value, growth, and momentum [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score indicating a better chance of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score assesses a company's future prospects and financial health by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends by evaluating factors like one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [6] Zacks Rank and Style Scores Interaction - The Zacks Rank, based on earnings estimate revisions, is a successful stock-rating model, with 1 (Strong Buy) stocks yielding an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] Stock Highlight: Sonos (SONO) - Sonos, a consumer electronics company, holds a Zacks Rank of 2 (Buy) and a VGM Score of A, making it attractive for momentum investors [11] - The stock has seen a 14.9% increase over the past four weeks, with a recent upward revision in earnings estimates for fiscal 2025 [12]