SONO Stock Analysis: Buy, Sell, or Hold?
SONO - Sonos, Inc. Common Stock
$15.83
-0.22 (-1.37%)
▼
5d:
-2.94%
30d:
+8.95%
90d:
+7.54%
WAIT
LOW Confidence
Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Jul 29, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 MIXED SIGNALS: SONO shows conflicting indicators. Wait for confirmation before entering.
📊 MIXED SIGNALS: SONO shows conflicting indicators. Wait for confirmation before entering.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$17.95
Based on -6.4% avg growth
INTRINSIC VALUE TODAY
$11.15
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 $15.83, which is considered extended relative to its 30-day fair value range of $14.61 to $16.27. From a valuation perspective, the stock is trading at a discount (Forward PE: 15.8) compared to its historical average (30.3). Remarkably, the market is currently pricing in an annual earnings decline of 19.5% 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 $14.90, while resistance sits at $17.01.
Market Sentiment: The stock scores a mixed 41/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $18.88 (+17.6%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, SONO is in a strong uptrend. Immediate support is located at $14.90, while resistance sits at $17.01.
Market Sentiment: The stock scores a mixed 41/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $18.88 (+17.6%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$14.61 -
$16.27
Company Quality Score
48/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
48.6%
All Signals
- BEARISH: Price extended above range
- NEUTRAL: Mixed technical signals (41/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($18.88)
- WARNING: Composite score 48/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$14.61 -
$16.27
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$14.90
Resistance Level
$17.01
Current Trend
Strong Uptrend
Technical data as of
Aug 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
15.81
Wall Street Target
$18.88
(+17.6%)
Revenue Growth (YoY)
8.8%
Earnings Growth (YoY)
87.5%
Profit Margin
3.8%
Valuation Discount vs History
-19.5% cheaper
PE vs Historical
15.8 vs 30.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-19.5%
(market-implied from PE analysis)
1-Year Target
$14.45
(-10%)
2-Year Target
$13.00
(-19%)
3-Year Target
$11.70
(-27%)
3-Yr Target (if PE normalizes)
(PE: 16→30)
$22.42
(+40%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.1, Growth: -16.8%)
$14.85
(+-8%)
Base:
(SPY PE: 15.8, Growth: -16.8%)
$11.70
(-27%)
Bear:
(PE: 13.4, Growth: -16.8%)
$9.95
(-38%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (35x PE), but valuation improves significantly next year (16x PE) as earnings recover.
Trailing PE: 35.39 | Current EPS (TTM): $0.46
Bull Case
$35.82
(+126%)
Analyst growth 100.0%, PE expands to 38.9
Base Case
$32.56
(+106%)
Market implied 100.0%, PE stable at 35.4
Bear Case
$11.07
(-30%)
Severe decline -20.0%, PE contracts to 30.1
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 15.8 to 30.3
Stabilization Target:
$30.75
(+91.6%)
PE Expansion Potential:
+91.6%
Share & Embed Analysis
Last updated: August 22, 2026 8:30 PM ET
Data refreshes hourly during market hours. Next update: 9:30 PM
Data refreshes hourly during market hours. Next update: 9:30 PM
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Technical Signals Check
Is SONO showing a specific setup today?
Insider Activity (6 Months)
8
Buys
0
Sells
+
Net
INSIDERS BUYING
Recent Transactions
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125000 shares
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13920 shares
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90000 shares
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