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Sleep Number (SNBR) Bottoming Pattern

Sleep Number (SNBR) Bottoming Pattern

by | Jul 14, 2021 | Chart SetUps

Sleep Number (SNBR) shares have a multi-week bottoming pattern forming above the rising 200-day moving average and shares emerged out of that base on 7/14 though did close just back below VWAP off its 2021 highs, a move through that high can start a move back to $140. SNBR also broke out of its pullback trend and RSI pushed back above 50 though needing Accumulation/Distribution to gain momentum. SNBR does not have any notable options open interest but has always screened as a top small cap own and currently with a $2.7B market cap trading 16.1X Earnings, 1.4X Sales and 10X EBITDA shares remain attractively valued with revenues seen rising 20% in 2021 and EBITDA up 17%. The mattress demand environment remains very strong and SNBR also has nearly 15% of its float short.