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Sonos (SONO) is a Top-Ranked Momentum Stock: Should You Buy?
ZACKS· 2025-09-12 14:51
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]
Here's Why Sonos (SONO) is a Strong Momentum Stock
ZACKS· 2025-08-19 14:51
Group 1 - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1][2] - The Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] Group 2 - Stocks are rated with an alphabetic system from A to F based on their value, growth, and momentum qualities, with A being the highest score indicating a better chance of outperforming [3] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to find attractive investment opportunities [3][4] - The Growth Score emphasizes a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow for sustainable growth [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes, aligning with the strategy of momentum trading [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [6] Group 3 - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for the highest probability of success [9][10] Group 4 - Sonos (SONO) is a consumer electronics company specializing in immersive sound speakers, currently rated 2 (Buy) on the Zacks Rank with a VGM Score of A [11] - Sonos has a Momentum Style Score of A, with shares increasing by 28.6% over the past four weeks, indicating strong momentum [11][12] - Recent earnings estimates for Sonos have been revised higher, with the Zacks Consensus Estimate increasing by $0.29 to $0.59 per share, and an average earnings surprise of +24% [12]