Sonos Stock Buy Hold or Sell Recommendation

SONO
 Stock
  

USD 19.08  0.22  1.14%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Sonos Inc is 'Strong Hold'. Macroaxis provides Sonos buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Sonos positions. The advice algorithm takes into account all of Sonos' available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Sonos' buy-and-hold perspective. Additionally, take a look at Sonos Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Sonos and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Sonos Inc.

Execute Sonos Buy or Sell Advice

The Sonos recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Sonos Inc. Macroaxis does not own or have any residual interests in Sonos Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Sonos' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell SonosBuy Sonos
Strong Hold

Volatility

Not too volatileDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very LowDetails

Economic Sensitivity

Actively responds to the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Sonos Inc has a Risk Adjusted Performance of (0.14), Jensen Alpha of (0.17), Total Risk Alpha of 0.0796 and Treynor Ratio of (0.28)
Our advice tool can cross-verify current analyst consensus on Sonos and to analyze the firm potential to grow in the current economic cycle. To make sure Sonos Inc is not overpriced, please validate all Sonos fundamentals, including its revenue, cash flow from operations, current asset, as well as the relationship between the cash per share and beta . Given that Sonos Inc has a number of shares shorted of 15 M, we advise you to double-check Sonos Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Sonos Trading Alerts and Improvement Suggestions

Sonos Inc generated a negative expected return over the last 90 days
Sonos Inc has high historical volatility and very poor performance
Sonos Inc is unlikely to experience financial distress in the next 2 years
Sonos Inc has a poor financial position based on the latest SEC disclosures
Latest headline from MacroaxisInsider: Exercise or conversion by Matthew Siegel of 40312 shares of Sonos subject to Rule 16b-3

Sonos current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Sonos analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Sonos analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price34.71
Target Median Price38.00
Target High Price45.00
Recommendation Mean2.10
Number Of Analyst Opinions7
Target Low Price24.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Sonos Returns Distribution Density

The distribution of Sonos' historical returns is an attempt to chart the future uncertainty of Sonos' future price movements. The chart of the probability distribution of Sonos stock daily returns describes the distribution of returns around its average expected value. We use Sonos Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Sonos returns is essential to provide solid investment advice for Sonos stock.
Mean Return-0.44Value At Risk-6.77
Potential Upside6.40Standard Deviation4.36
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Sonos historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Sonos Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Sonos or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Sonos stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Sonos stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.17
β
Beta against DOW1.63
σ
Overall volatility
4.01
Ir
Information ratio -0.06

Sonos Volatility Alert

Sonos Inc exhibits very low volatility with skewness of 0.99 and kurtosis of 2.38. However, we advise investors to further study Sonos Inc technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sonos' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sonos' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Sonos Implied Volatility

Sonos' implied volatility exposes the market's sentiment of Sonos Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Sonos' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Sonos stock will not fluctuate a lot when Sonos' options are near their expiration.

Sonos Fundamentals Vs Peers

Comparing Sonos' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Sonos' direct or indirect competition across all of the common fundamentals between Sonos and the related equities. This way, we can detect undervalued stocks with similar characteristics as Sonos or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Sonos' fundamental indicators could also be used in its relative valuation, which is a method of valuing Sonos by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Sonos to competition
FundamentalsSonosPeer Average
Return On Equity25.18 %(0.31) %
Return On Asset8.26 %(0.14) %
Profit Margin8.63 %(1.27) %
Operating Margin9.29 %(5.51) %
Current Valuation2.2 B16.62 B
Shares Outstanding127.13 M571.82 M
Shares Owned by Insiders1.28 %10.09 %
Shares Owned by Institutions100.15 %39.21 %
Number of Shares Shorted15 M4.71 M
Price to Earning18.00 X28.72 X
Price to Book4.54 X9.51 X
Price to Sales1.49 X11.42 X
Revenue1.74 B9.43 B
Gross Profit809.99 M27.38 B
EBITDA196.36 M3.9 B
Net Income149.78 M570.98 M
Cash and Equivalents754.42 M2.7 B
Cash per Share5.91 X5.01 X
Total Debt44.08 M5.32 B
Debt to Equity0.06 %48.70 %
Current Ratio1.94 X2.16 X
Book Value Per Share4.48 X1.93 K
Cash Flow from Operations218.65 M971.22 M
Short Ratio3.81 X4.00 X
Earnings Per Share1.13 X3.12 X
Price to Earnings To Growth1.61 X4.89 X
Number of Employees1.52 K18.84 K
Beta1.83-0.15
Market Capitalization2.59 B19.03 B
Total Asset349.28 M29.47 B
Retained Earnings(147.88 M)9.33 B
Working Capital190.46 M1.48 B
Current Asset241.18 M9.34 B
   Exercise or conversion by Matthew Siegel of 40312 shares of Sonos subject to Rule 16b-3 [view details]

Sonos Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Sonos . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution2668.27
Daily Balance Of Power(0.40)
Rate Of Daily Change0.99
Day Median Price18.95
Day Typical Price18.99
Market Facilitation Index0.0
Price Action Indicator0.025

About Sonos Buy or Sell Advice

When is the right time to buy or sell Sonos Inc? Buying financial instruments such as Sonos Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Sonos investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2010 2016 2021 2022 (projected)
Receivables45.31 M100.78 M47.36 M54.71 M
Inventories53.56 M185.13 M113.86 M126.34 M

Use Investing Ideas to Build Portfolios

In addition to having Sonos in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Utilities Thematic Idea Now

Utilities
Utilities Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Utilities theme has 61 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Utilities Theme or any other thematic opportunities.
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Additionally, take a look at Sonos Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Sonos Inc information on this page should be used as a complementary analysis to other Sonos' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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Is Sonos' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sonos. If investors know Sonos will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sonos listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.5
Market Capitalization
2.5 B
Quarterly Revenue Growth YOY
0.2
Return On Assets
0.0847
Return On Equity
0.23
The market value of Sonos Inc is measured differently than its book value, which is the value of Sonos that is recorded on the company's balance sheet. Investors also form their own opinion of Sonos' value that differs from its market value or its book value, called intrinsic value, which is Sonos' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sonos' market value can be influenced by many factors that don't directly affect Sonos' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sonos' value and its price as these two are different measures arrived at by different means. Investors typically determine Sonos value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sonos' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.