Smart bed maker Sleep Number reported a 451% increase in earning per share last quarter, and its stock has soared recently. The company may be turning a corner after a difficult couple of years. On Wednesday, the Relative Strength Rating for Sleep Number stock popped 11 points, from 69 to 80, crossing a key threshold along the way.
Sleep Number Stock Joins Elite Group
The upgraded 80 RS Rating indicates that Sleep Number stock topped 80% of all stocks for price performance over the past 12 months. It's notable because market research shows that the market's biggest winners tend to have an 80 or better RS Rating in the early stages of their moves.
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Sleep Number has a number of contradictions. Last quarter its EPS soared 451% to 51 cents per share. But its profit growth was flat the prior quarter and the quarter before that it plunged 90% year over year. Revenue last quarter was flat with the same quarter a year ago at $526.5 million. The quarter before that it edged up 1% and the one before that it fell 16%. Keep an eye out for the company's next round of numbers on or around July 27.
Of equal interest, Minneapolis-based Sleep Number's stock plunged from an intraday high 150.85 in early April 2021 to 17.50 on June 2 this year. However, it's taken off recently and traded at 39.25 Wednesday afternoon, up 9% for the day, and more than double its price just six-and-a-half weeks ago. It was on track for its eighth higher close in the last nine trading sessions.
A Riddle Wrapped In A Mystery Inside An Enigma
It's not clear whether it's a genuine turnaround or a head-fake, but Sleep Number stock is one to keep an eye on. Now is not an ideal time to jump in since it isn't near a proper buy zone, but see if the stock is able to establish a proper base like a cup pattern, and enter a buy zone in heavy volume.
Sleep Number stock earns the No. 10 rank among its peers in the Retail-Home Furnishings industry group. Ethan Allen and Haverty Furniture A are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
The exclusive Relative Strength Rating from Investor's Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
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