SONO Stock Analysis: Buy, Sell, or Hold?
SONO - Sonos, Inc. Common Stock
$14.83
0.14 (0.95%)
▲
5d:
-1.53%
30d:
+4.88%
90d:
-4.38%
BUY
MODERATE Confidence
Analysis Updated: May 15, 2026 12:00 AM ET
Earnings: Aug 05, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: SONO shows positive signals but monitor for confirmation. Market pricing in 29.2% decline. Moderate conviction.
💡 BUY OPPORTUNITY: SONO shows positive signals but monitor for confirmation. Market pricing in 29.2% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$26.67
Based on -0.2% avg growth
INTRINSIC VALUE TODAY
$16.56
10.5% Margin of Safety
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 $14.83, which is considered slightly high relative to its 30-day fair value range of $13.70 to $14.98. From a valuation perspective, the stock is trading at a discount (Forward PE: 13.7) compared to its historical average (38.8). Remarkably, the market is currently pricing in an annual earnings decline of 29.2% 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 $12.83, while resistance sits at $15.55.
Market Sentiment: The stock shows a mixed technical setup (55/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $19.12 (+29.0%). 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 $12.83, while resistance sits at $15.55.
Market Sentiment: The stock shows a mixed technical setup (55/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $19.12 (+29.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY HIGH
Historical Trading Range
$13.70 -
$14.98
Company Quality Score
58/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
65.2%
All Signals
- NEUTRAL: Mixed technical signals (55/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 29.0% below Wall St target ($19.12)
Trading Range Analysis
30-Day Trading Range
$13.70 -
$14.98
Current vs Trading Range
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$12.83
Resistance Level
$15.55
Current Trend
Strong Uptrend
Technical data as of
May 15, 2026
Fundamental Context
Forward P/E (Next Year Est.)
13.73
Wall Street Target
$19.13
(+29.0%)
Revenue Growth (YoY)
8.4%
Earnings Growth (YoY)
87.5%
Profit Margin
1.6%
Valuation Discount vs History
-29.2% cheaper
PE vs Historical
13.7 vs 38.8
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-29.2%
(market-implied from PE analysis)
1-Year Target
$13.35
(-10%)
2-Year Target
$12.01
(-19%)
3-Year Target
$10.81
(-27%)
3-Yr Target (if PE normalizes)
(PE: 14→39)
$30.55
(+106%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.1, Growth: -4.4%)
$20.81
(+40%)
Base:
(SPY PE: 13.7, Growth: -4.4%)
$12.95
(-13%)
Bear:
(PE: 11.7, Growth: -4.4%)
$11.01
(-26%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (37x PE), but valuation improves significantly next year (14x PE) as earnings recover.
Forward PE: 37.31 | Forward EPS (Implied): $0.40
Bull Case
$17.91
(+21%)
Analyst growth 15.0%, PE expands to 39.2
Base Case
$14.83
(0%)
Market implied 0.0%, PE stable at 37.3
Bear Case
$11.34
(-24%)
Severe decline -15.0%, PE contracts to 33.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 13.7 to 38.8
Stabilization Target:
$41.90
(+182.6%)
PE Expansion Potential:
+182.6%
Share & Embed Analysis
Last updated: May 15, 2026 9:38 PM ET
Data refreshes hourly during market hours. Next update: 10:38 PM
Data refreshes hourly during market hours. Next update: 10:38 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
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