Shares of bedding manufacturer Somnigroup (NYSE:SGI)
jumped 11.1% in the morning session after the company reported strong third-quarter financial results that beat expectations and raised its full-year guidance. The bedding manufacturer announced that its revenue grew by 63.3% year-over-year to $2.12 billion, surpassing analyst forecasts of $2.06 billion. The company's adjusted earnings per share of $0.95 also topped Wall Street's expectations of $0.86. This strong performance was driven by significant growth in its direct-to-consumer sales, which offset a miss in its wholesale segment. Adding to the positive news, Somnigroup increased its full-year adjusted EPS guidance to a midpoint of $2.68. The comprehensive earnings beat and improved outlook fueled investor confidence in the company's direction.
Bedding manufacturer Somnigroup (NYSE:SGI) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 63.3% year on year to $2.12 billion. Its non-GAAP profit of $0.95 per share was 10.7% above analysts’ consensus estimates.
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations.
However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
Since October 2020, the S&P 500 has delivered a total return of 100%. But one standout stock has more than doubled the market - over the past five years, Somnigroup has surged 264% to $83.22 per share. Its momentum hasn’t stopped as it’s also gained 33.2% in the last six months, beating the S&P by 14.8%.
Somnigroup International (NYSE: SGI) has outperformed the market over the past 10 years by 3.25% on an annualized basis producing an average annual return of 16.12%. Currently, Somnigroup International has a market capitalization of $17.35 billion.
The stocks in this article are all trading near their 52-week highs.
This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.
Expensive stocks often command premium valuations because the market thinks their business models are exceptional.
However, the downside is that high expectations are already baked into their prices, leaving little room for error if they stumble even slightly.
Most consumer discretionary businesses succeed or fail based on the broader economy. Lately, it seems like demand trends have worked in their favor as the industry has returned 10.3% over the past six months,
similar to the S&P 500.
Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
Bedding manufacturer Somnigroup (NYSE:SGI) fell short of the market’s revenue expectations in Q2 CY2025, but sales rose 52.5% year on year to $1.88 billion. Its non-GAAP profit of $0.53 per share was 3.6% above analysts’ consensus estimates.
Bedding manufacturer Somnigroup (NYSE:SGI) fell short of the market’s revenue expectations in Q2 CY2025, but sales rose 52.5% year on year to $1.88 billion. Its non-GAAP profit of $0.53 per share was 3.6% above analysts’ consensus estimates.
