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Despite Fast-paced Momentum, Sleep Number (SNBR) Is Still a Bargain Stock
ZACKS· 2025-06-06 13:51
Group 1 - Momentum investing is characterized by the strategy of "buying high and selling higher," contrasting with the traditional "buy low and sell high" approach [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if their valuations exceed future growth potential [1] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [2] Group 2 - Sleep Number (SNBR) has demonstrated significant price movement, with a 25.5% increase over the past four weeks, indicating growing investor interest [3] - Over a longer timeframe, SNBR has gained 54.2% in the past 12 weeks, showcasing its ability to deliver sustained positive returns [4] - SNBR has a Momentum Score of B, suggesting it is an opportune time to invest in the stock to capitalize on its momentum [5] Group 3 - SNBR has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest and drive prices higher [6] - The stock is currently trading at a Price-to-Sales ratio of 0.14, indicating it is undervalued, as investors pay only 14 cents for each dollar of sales [6] - SNBR appears to have significant growth potential, supported by its fast-paced momentum characteristics [7] Group 4 - In addition to SNBR, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can assist in identifying winning stock picks [8]
Here's Why Sleep Number (SNBR) Is a Great 'Buy the Bottom' Stock Now
ZACKS· 2025-05-07 14:55
Core Viewpoint - Sleep Number (SNBR) has experienced a downtrend, losing 7.9% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be subsiding, which is a bullish signal for the stock [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a new low, buying interest has emerged to push the stock price up towards the opening price [4][5]. - The effectiveness of the hammer pattern is enhanced when it appears at the bottom of a downtrend, signaling that bears may be losing control [5][6]. Fundamental Analysis - There has been a notable upward trend in earnings estimate revisions for Sleep Number, which is a bullish indicator as it typically leads to price appreciation [7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 46.4%, indicating strong agreement among analysts that the company will report better earnings than previously expected [8]. - Sleep Number currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperform the market [9].