CSPR - Buy These 4 Stocks to Help You Sleep at Night

Are you finding it difficult to sleep at night? If so, you are not alone. From the pandemic to a rocky stock market, an unpredictable economy, and a dramatic election, there is plenty on the average American’s mind.

Though losing sleep is certainly concerning, there is a way to profit from the society-wide sleep disturbance. Carefully select the right sleep stocks and your portfolio should grow in the weeks and months to come.

Here is a quick look at four sleep-related stocks likely to spike as the uneasiness continues: ResMed Inc. (RMD), Sleep Number Corporation (SNBR), Ethan Allen Interiors (ETH), and Casper Sleep (CSPR).

ResMed Inc. (RMD)

RMD develops, makes, and distributes medical equipment to help those with sleep disorders. RMD products diagnose, treat, and manage disorders relating to sleep.

The POWR Ratings show RMD has "A" grades in the Industry Rank and Trade Grade components along with "B" grades in the Peer Grade and Buy & Hold Grade components. RMD is ranked 25th out of 142 stocks in the Medical - Devices & Equipment category. The stock has steadily climbed back toward its summer trading high of $205 in recent weeks after dipping down to $167.

RMD's customer base is expanding, helping the company grow its revenue with each passing year. RMD annual revenue growth jumped 13% in 2020, hitting an impressive $3 billion. The number of people diagnosed with sleep apnea, COPD, and asthma continues to increase, meaning there are that many more customers for RMD to sell its sleep products to.

Furthermore, RMD's software-as-a-service revenue spiked nearly 30% in the latest fiscal year, hitting $355 million. RMD is clearly in a position to grow across posterity, adding even more clients and revenue, ultimately helping the stock ascend to new heights.

Sleep Number Corporation (SNBR)

SNBR makes and markets beds that can be adjusted by the user’s desired level of firmness. SNBR also makes additional sleep-related products.

SNBR is a POWR Ratings superstar with "A" grades in the Trade Grade, Buy & Hold Grade, Peer Grade, and Industry Rank components. All in all, SNBR is ranked 11th of nearly 70 stocks in the Home Improvement & Goods space.

SNBR's year-over-year sales are up 12%, hitting $531 million. Furthermore, the company's operating margin increased 500 basis points in this period of time. SNBR paid back the entirety of a $75 million term loan earlier last quarter, making it clear the company is excelling during the pandemic.

Ethan Allen Interiors (ETH)

Home furnishings including mattresses and box springs are selling like hotcakes thanks to the country’s seemingly unstoppable housing market. ETH sells mattresses, box springs, furniture, and other home-related accessories.

ETH has solid POWR Ratings including "A" grades in the Trade Grade and Industry Rank components. ETH is ranked slightly outside of the top half of the Home Improvement & Goods stocks. ETH's wholesale orders are up nearly 10%. Furthermore, ETH's gross profit margin is just under 60%, a high point in the past decade.

ETH has slowly returned toward its pre-COVID trading level in recent months. The stock jumped from $13 in mid-October to nearly $18 in less than two weeks. Look for ETH to climb even higher as the blazing hot housing market continues.

Casper Sleep (CSPR)

CSPR makes home furnishings highlighted by comfortable mattresses, duvets, sheets, and pillows. Furthermore, CSPR sells sleep technology along with bedroom accessories on its e-commerce platform and in retail stores.

CSPR's POWR Ratings are highlighted by an "A" Industry Rank grade. Check out the top analysts’ take on CSPR and you will find they are bullish, setting an average price target of $10.86, indicating the stock has more than 55% upside.

CSPR's digital strength should help the stock hold its current trading price or move higher as the pandemic continues, possibly returning to its pre-COVID trading price of $14.