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Is Sleep Number Stock a Buy?7/11/2023
Almost everyone is familiar with the company Sleep Number. We've all seen their ads and their stores, and it turns out a lot of people are buying from them. When I began researching this company, there were many factors of their financials that surprised me, but I was very surprised by the fact that the company is as profitable as it is. Let's look at the numbers.
Sleep Number currently trades at a $660 million valuation at time of writing. They currently are trading at around 13.6 times their earnings. In 2022, Sleep Number brought in $2.18 billion in revenue and profited $153.75 million off of that. In 2021, they brought in $1.86 billion and profited $139.19 million. This is impressive growth that the company is experiencing. The company does not offer a dividend even with its profitability. This makes sense though as the company does have debt. Sleep Number is currently up around 47% so far over the last month, and they are up a total of around 15.3% year to date so far. Over the last year, they are still down 7.8%. While some market analysts fear how a premium brand like Sleep Number will fare in this current economy, I personally feel like Sleep Number is currently trading at a really reasonable valuation. Obviously, it would have been better to buy this stock a month ago, but I don't think it's a bad buy right now with a longterm strategy in mind. Sleep Number was once valued at $151.44 a share. It's currently trading at around $30 a share. I don't think Sleep Number is going to get back to $151.44 a share anytime soon at all, but at $30 a share I think the stock looks very cheap right now. Join The CWT Money Club to get access to all my writings on budgeting, money management, and personal finance. Join the club here - patreon.com/financebycwt Follow Finance by CWT on social media down below!
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