It has maintained overperformance over the consumer discretionary sector (represented by XLY) but has lost some of its relative strength against it.
It appears that the extra alpha and extreme overperformance is going to be back on SONO 's side based on the chart bottom chart where the relative strength is hitting a level that usually would result in a bounce back.
They have earnings coming up and tend to trade very well after earnings, at least initially. On average based on the last 3 earnings reports, they could have roughly a 25.77% return after this upcoming earnings report.
This is also a holiday/seasonal trade for me. They should have a killer quarter.
The company is also extremely well managed and the product is unbelievable. Sonos isn't going anywhere anytime soon unless they get acquired AT A PREMIUM.
@iamftffl, they have earnings coming up on feb 9th. Out of the last 5 earnings reports, they have traded up following earnings for 4/5. I expect them to knock the cover off the ball this earnings report since it includes the holidays. It should trade up into and through earnings. Anyways, I'm still long and have dollar cost averaged to increase my position. They have a superior product and are expanding their product line up. Imagine YETI before everyone knew about it