Cirrus Logic (CRUS) Gains But Lags Market: What You Should Know
In the latest trading session, Cirrus Logic (CRUS) closed at $79.91, marking a +0.76% move from the previous day. The stock lagged the S&P 500's daily gain of 2.14%. Meanwhile, the Dow gained 1.82%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Coming into today, shares of the chipmaker had lost 3.39% in the past month. In that same time, the Computer and Technology sector lost 10.13%, while the S&P 500 lost 5.01%.
Cirrus Logic will be looking to display strength as it nears its next earnings release. On that day, Cirrus Logic is projected to report earnings of $1.41 per share, which would represent year-over-year growth of 113.64%. Meanwhile, our latest consensus estimate is calling for revenue of $420.4 million, up 43.22% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.31 per share and revenue of $1.71 billion. These totals would mark changes of +37.77% and +25.01%, respectively, from last year.
Any recent changes to analyst estimates for Cirrus Logic should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Cirrus Logic currently has a Forward P/E ratio of 12.57. This valuation marks a discount compared to its industry's average Forward P/E of 17.48.
Also, we should mention that CRUS has a PEG ratio of 1.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.18 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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