In the latest trading session, Turtle Beach (HEAR) closed at $11.11, marking a +0.09% move from the previous day. This change outpaced the S&P 500’s 0.12% loss on the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.32%.
Coming into today, shares of the audio technology company had gained 24.16% in the past month. In that same time, the Computer and Technology sector gained 2.43%, while the S&P 500 gained 3.31%.
Investors will be hoping for strength from HEAR as it approaches its next earnings release. On that day, HEAR is projected to report earnings of -$0.17 per share, which would represent a year-over-year decline of 142.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.66 million, down 29.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.12 per share and revenue of $247.12 million, which would represent changes of -63.28% and -14.03%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for HEAR. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 12% higher. HEAR currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, HEAR is holding a Forward P/E ratio of 9.91. Its industry sports an average Forward P/E of 26.32, so we one might conclude that HEAR is trading at a discount comparatively.
Also, we should mention that HEAR has a PEG ratio of 1.1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Communication – Components industry currently had an average PEG ratio of 1.52 as of yesterday’s close.
The Communication – Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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