2023-07-07 05:22:00 ET
Several companies that were able to make being stuck at home a little less miserable fared well in 2020 and 2021. Home audio equipment maker Sonos (NASDAQ: SONO) was one such beneficiary.
But let's accept another important fact: Some stocks (including Sonos) raced much higher than they should have specifically because of the pandemic, paying the price for these overzealous rallies once 2022 rolled around. As of the latest look, Sonos shares are sitting 64% below their mid-2021 peak, and are still within easy reach of a new 52-week low. The sheer scope of the selling has prompted some investors to write the company off as a potential future investment.
Big mistake. See, there's yet-another third truth investors should be willing to embrace: This stock's steep sell-off is just as overdone as its pandemic-prompted gain was, leaving it ripe for a bullish reversal.
For further details see:
1 Growth Stock Down 64% to Buy Right Now