SONO - Sonos: Product Launches To Drive 2024 Recovery

2024-02-13 11:25:27 ET

Summary

• Sonos has lost ~20% of its value over the past year but is expected to experience a turnaround in 2024.
• The company plans to enter the headphone market in 2024, with over-ear headphones expected to retail for $400-$500.
• Sonos gained market share in the U.S. home theater category in Q1 and achieved substantial gross margin expansion.
• Stay long here as the company positions itself to return to growth in a favorable time in its product cycle.

Amid an expensive stock market and an S&P 500 that has crossed the 5,000 watermark, it's a great time for investors to be looking out for more contrarian, value-oriented plays. These companies may not be the flashiest in the market today: but they may save us from downside if valuation multiples start to compress again....

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