Shares of Sleep Number SNBR have soared 110% in the last six months to more than double the Home Furnishing-Appliance Market, as people upgrade their living spaces during the pandemic. More importantly, home buying is surging amid the record-low mortgage rates and a desire for more space during the coronavirus.
Sleep Number is set to release its Q3 FY20 results on Wednesday, October 14. So should investors consider buying the high-end bed firm’s stock as a longer-term bet on the housing market?
The Quick Pitch
U.S. home sales surged 10.5% on an annual basis in August, which came after July’s huge growth that represented the strongest monthly gain ever recorded, dating back to 1968. And now the housing market is finally being driven by millennials, which has industry analysts projecting a multi-year boom for the market, as the largest portion of the generation start to get married and have kids.