SONO Stock Analysis: Buy, Sell, or Hold?
SONO - Sonos, Inc. Common Stock
$13.62
0.22 (1.64%)
▲
5d:
-1.02%
30d:
-17.3%
90d:
-0.73%
HOLD
MODERATE Confidence
Analysis Updated: Jul 2, 2026 12:00 AM ET
Earnings: Aug 05, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: SONO shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: SONO shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$21.53
Based on -3.1% avg growth
INTRINSIC VALUE TODAY
$13.37
Trading above historical range
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 $13.62, which is considered oversold relative to its 30-day fair value range of $13.94 to $15.84. From a valuation perspective, the stock is trading at a discount (Forward PE: 13.4) compared to its historical average (33.3). Remarkably, the market is currently pricing in an annual earnings decline of 26.1% 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. The price is currently testing key support at $14.85. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: SONO has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $19.12 (+40.4%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, SONO is in a strong uptrend. The price is currently testing key support at $14.85. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: SONO has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $19.12 (+40.4%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$13.94 -
$15.84
Company Quality Score
50/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
57.1%
All Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 40.4% below Wall St target ($19.12)
Trading Range Analysis
30-Day Trading Range
$13.94 -
$15.84
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$14.85
Resistance Level
$16.77
Current Trend
Strong Uptrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
13.42
Wall Street Target
$19.13
(+40.4%)
Revenue Growth (YoY)
8.4%
Earnings Growth (YoY)
87.5%
Profit Margin
1.6%
Valuation Discount vs History
-26.1% cheaper
PE vs Historical
13.4 vs 33.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-26.1%
(market-implied from PE analysis)
1-Year Target
$12.26
(-10%)
2-Year Target
$11.03
(-19%)
3-Year Target
$9.93
(-27%)
3-Yr Target (if PE normalizes)
(PE: 13→33)
$24.64
(+81%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: -10.2%)
$16.12
(+18%)
Base:
(SPY PE: 13.4, Growth: -10.2%)
$9.93
(-27%)
Bear:
(PE: 11.4, Growth: -10.2%)
$8.44
(-38%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (37x PE), but valuation improves significantly next year (13x PE) as earnings recover.
Forward PE: 37.31 | Forward EPS (Implied): $0.37
Bull Case
$16.45
(+21%)
Analyst growth 15.0%, PE expands to 39.2
Base Case
$13.62
(0%)
Market implied 0.0%, PE stable at 37.3
Bear Case
$10.42
(-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 13.4 to 33.3
Stabilization Target:
$33.80
(+148.2%)
PE Expansion Potential:
+148.2%
Share & Embed Analysis
Last updated: July 03, 2026 6:24 PM ET
Data refreshes hourly during market hours. Next update: 7:24 PM
Data refreshes hourly during market hours. Next update: 7:24 PM
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Technical Signals Check
Is SONO showing a specific setup today?
Insider Activity (6 Months)
15
Buys
0
Sells
+
Net
INSIDERS BUYING
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