Cirrus Logic (CRUS) Dips More Than Broader Markets: What You Should Know
Cirrus Logic (CRUS) closed at $92.41 in the latest trading session, marking a -1.68% move from the prior day. This change lagged the S&P 500's daily loss of 0.06%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, lost 0.3%.
Coming into today, shares of the chipmaker had gained 15.35% in the past month. In that same time, the Computer and Technology sector gained 4.06%, while the S&P 500 gained 5.76%.
Wall Street will be looking for positivity from Cirrus Logic as it approaches its next earnings report date. The company is expected to report EPS of $2.15, up 0.94% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $510.44 million, up 5.07% from the prior-year quarter.
CRUS's full-year Zacks Consensus Estimates are calling for earnings of $5.37 per share and revenue of $1.6 billion. These results would represent year-over-year changes of +17.25% and +16.76%, respectively.
Any recent changes to analyst estimates for Cirrus Logic should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cirrus Logic is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Cirrus Logic's current valuation metrics, including its Forward P/E ratio of 17.5. For comparison, its industry has an average Forward P/E of 24.01, which means Cirrus Logic is trading at a discount to the group.
Meanwhile, CRUS's PEG ratio is currently 1.87. 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 Electronics - Semiconductors was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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