Strength Seen in Sonos (SONO): Can Its 10.2% Jump Turn into More Strength?

Sonos SONO shares soared 10.2% in the last trading session to close at $8.98. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 30.4% loss over the past four weeks.The increase in share price can attributed to President Trump’s announcement of a 90-day pause on reciprocal tariffs, barring China. This led to skyrocketing indices and subsequent increases for most stocks including Sonos.Apart from that, the company specific factors are also driving the stock price performance. Sonos’ strategy of expanding its direct-to-consumer channels, broadening its partner ecosystem, and increasing its international footprint—especially in emerging markets like Asia—is fueling revenue growth. Strong online sales through sonos.com, coupled with targeted distribution and marketing efforts, are boosting brand awareness and household penetration.Sonos is driving growth through product innovation, entering the personal listening space with its first over-the-ear Bluetooth headphones, Sonos Ace. Strong demand for the Sonos Ace and premium soundbar Arc Ultra helped offset challenges and boosted revenue, especially during the holiday season. The launch of Arc Ultra and Sub 4 further strengthened its home theater lineup. Additionally, the Era 100 Pro marks Sonos' entry into the $2 billion light-commercial audio market, expanding its reach into professional installation segments.This maker of wireless speakers and home sound systems is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $256.38 million, up 1.5% from the year-ago quarter.Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.For Sonos, the consensus EPS estimate for the quarter has been revised 187.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SONO going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Sonos is a member of the Zacks Audio Video Production industry. One other stock in the same industry, Dolby Laboratories DLB, finished the last trading session 7.2% higher at $74.36. DLB has returned -15.2% over the past month.For Dolby Laboratories, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.29. This represents a change of +1.6% from what the company reported a year ago. Dolby Laboratories currently has a Zacks Rank of #2 (Buy).7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sonos, Inc. (SONO): Free Stock Analysis Report Dolby Laboratories (DLB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks