Technicalspeculator.com’s Trade-of-the-Week: Sleep Number Corp. (SNBR)

By Tech_Spec
18-February-2019 8:59:38 AM
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This week’s NASDAQ trade comes from the consumer discretionary sector, furnishing sector.  We feel that the stock is reasonably priced with a low P/E for the industry and  has favourable technicals (i.e. breakout with volume).

Company profile: Sleep Number Corporation, together with its subsidiaries, provides sleep solutions and services in the United States. It designs, manufactures, markets, retails, and services beds, bases, and bedding accessories under the Sleep Number name. The company also offers adjustable bases under the FlextFit name; and pillows and sheets, as well as other bedding products, including mattresses, box springs, and foundations under the Sleep Number name. The company sells its products directly to consumers through retail, online, and phone, as well as through wholesale.  It operates approximately 580 stores in 50 states. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was founded in 1987 and is headquartered in Minneapolis, Minnesota.

Fundamentals

Trailing P/E: 22.43, Forward P/E: 15.11

EPS: 1.92, PEG: 1.19, Beta: 1.55

P/S: 0.93, P/B: N/A

Profit margin: 4.54%, Operating margin: 6.03%

Qrtly earning growth: 70.90%, Current ratio: 0.31

Additional fundamental data: https://finance.yahoo.com/quote/SNBR/key-statistics?p=SNBR

Technicals:

Recent breakout of a 13-month consolidation

New 52-week high, New all-time high

Weekly buying momentum is positive and rising, Weekly volume spiked in February

The 1st support level is at $40, The safety stop is at $39.25

The target is $49.10

Suggested buying approach: Buy the stock at the current price level. If SNBR pulls back, as long as the price is above the the safety stop, wait for confirmation of support and then add to the position if desired. Always use a 3% trailing stop.

More research and trading ideas are at www.technicalspeculator.com.  Sign up for a free account!

 

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Author: Tech_Spec

Canada’s only Master of Financial Technical Analysis (MFTA). This 4 – 5 year program offered by the International Federation of Technical Analysts (IFTA) in England is regarded as the global standard. • Instructor of Technical Analysis for the Canadian Securities Institute (CSI). My role is teaching market analysis to industry professionals. • Financial Technical Analyst offering 25 years experience in the financial and investment service industry. • Editor and owner of the Technicalspeculator.com, an on-line independent financial market research and newsletter website. • Registered Securities Advisor

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