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Turtle Beach (HEAR) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Turtle Beach (HEAR) closed the most recent trading day at $11.03, moving +1.38% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.97%. At the same time, the Dow added 1.11%, and the tech-heavy Nasdaq gained 1.13%.

Coming into today, shares of the audio technology company had lost 0.09% in the past month. In that same time, the Computer and Technology sector gained 3.6%, while the S&P 500 gained 2.16%.

Investors will be hoping for strength from HEAR as it approaches its next earnings release, which is expected to be November 7, 2019. In that report, analysts expect HEAR to post earnings of -$0.23 per share. This would mark a year-over-year decline of 125.27%. Our most recent consensus estimate is calling for quarterly revenue of $45.20 million, down 39.27% from the year-ago period.

HEAR's full-year Zacks Consensus Estimates are calling for earnings of $0.98 per share and revenue of $246.60 million. These results would represent year-over-year changes of -67.87% and -14.21%, respectively.

Investors should also note any recent changes to analyst estimates for HEAR. These revisions help to show the ever-changing nature of near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. HEAR currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that HEAR has a Forward P/E ratio of 11.1 right now. For comparison, its industry has an average Forward P/E of 25.25, which means HEAR is trading at a discount to the group.

The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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