Logitech International (LOGI) is a Zacks Rank #1 (Strong Buy) and carries a grwoth style score of B along with a value style score of C. I like this stock here as the China trade deal is probably coming in the next month or so and that could be a big tailwind for this company. Today, LOGI is the Bull of the Day.
Logitech designs, manufactures and markets innovative peripherals that provide people with easy access to the digital world. The Company's product family includes Internet video cameras, mice and trackballs, keyboards, audio and telephony products, interactive gaming devices and 3D controllers.
I see a solid earnings history for LOGI. The company has topped the Zacks Consensus Estimate in each of the last four quarters. The most recent quarter saw a beat of 12 cents for an 18% positive earnings surprise.
In fact, the average positive earnings surprise over the last four quarters is right at 18.3%.
Estimates Tick HIgher
The key to the Zacks Rank is the move in earnings estimates. With a Zacks Rank #1 (Strong Buy) we know that estimates are moving higher. That is the case for LOGI, with the fiscal 2019 number moving from $1.86 90 days ago to $1.95.
The 2020 fiscal number has also bumped higher, moving from $2.07 to $2.12 over the same time horizon.
I see a good valuation here too, with a 19x forward PE multiple. Revenue growth on an annual basis is only 6%, but with margin improvement that could translate into much higher earnings estimates. A deal with China that provides more leverage for this company could easily help investors boost the multiple for this stock.
Logitech International S.A. Price and Consensus
Logitech International S.A. Price and Consensus | Logitech International S.A. Quote
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Logitech International S.A. (LOGI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research