SONO Stock Analysis: Buy, Sell, or Hold?
SONO - Sonos, Inc. Common Stock
$13.38
0.39 (3.00%)
▲
5d:
-0.74%
30d:
-8.98%
90d:
-24.32%
BUY
HIGH Confidence
Analysis Updated: Mar 30, 2026 12:00 AM ET
Earnings: May 06, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: SONO appears deeply undervalued. Market expects -32.4% annual earnings decline despite 88% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: SONO appears deeply undervalued. Market expects -32.4% annual earnings decline despite 88% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$13.11
Based on -9.0% avg growth
INTRINSIC VALUE TODAY
$8.14
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SONO is currently trading at $13.38, which is considered oversold relative to its 30-day fair value range of $13.33 to $15.28. From a valuation perspective, the stock is trading at a discount (Forward PE: 15.0) compared to its historical average (48.7). Remarkably, the market is currently pricing in an annual earnings decline of 32.4% over the next few years. This pessimistic expectation contrasts with the company's recent 87.5% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, SONO is in a strong uptrend. Immediate support is located at $12.44, while resistance sits at $13.89. The stock is showing strong short-term momentum, up 3.0% recently.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $19.38 (+49.2%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, SONO is in a strong uptrend. Immediate support is located at $12.44, while resistance sits at $13.89. The stock is showing strong short-term momentum, up 3.0% recently.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $19.38 (+49.2%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$13.33 -
$15.28
Company Quality Score
56/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
84.3%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+3.0%)
- BULLISH: Trading 49.2% below Wall St target ($19.38)
Fair Price Analysis
30-Day Fair Range
$13.33 -
$15.28
Current vs Fair Value
OVERSOLD
Support & Resistance Levels
Support Level
$12.44
Resistance Level
$13.89
Current Trend
Strong Uptrend
Technical data as of
Mar 30, 2026
Fundamental Context
Forward P/E (Next Year Est.)
15.02
Wall Street Target
$19.38
(+49.2%)
Revenue Growth (YoY)
-0.9%
Earnings Growth (YoY)
87.5%
Profit Margin
-1.2%
Valuation Discount vs History
-32.4% cheaper
PE vs Historical
15.0 vs 48.7
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-32.4%
(market-implied from PE analysis)
1-Year Target
$11.69
(-10%)
2-Year Target
$10.52
(-19%)
3-Year Target
$9.47
(-27%)
3-Yr Target (if PE normalizes)
(PE: 15→49)
$30.71
(+136%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: -22.1%)
$14.09
(+9%)
Base:
(SPY PE: 15.0, Growth: -22.1%)
$9.47
(-27%)
Bear:
(PE: 12.8, Growth: -22.1%)
$8.05
(-38%)
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 15.0 to 48.7
Stabilization Target:
$42.13
(+224.3%)
PE Expansion Potential:
+224.3%
Share & Embed Analysis
Last updated: March 31, 2026 11:04 AM ET
Data refreshes hourly during market hours. Next update: 12:04 PM
Data refreshes hourly during market hours. Next update: 12:04 PM
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Technical Signals Check
Is SONO showing a specific setup today?
Insider Activity (6 Months)
16
Buys
1
Sells
+
Net
INSIDERS BUYING
Recent Transactions
Coliseum Capital Managem…
BUY
125000 shares
2026-03-17
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BUY
13920 shares
2026-03-16
Coliseum Capital Managem…
BUY
90000 shares
2026-03-13
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