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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 $10.42, moving +0.97% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.23%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, lost 0.08%.

Coming into today, shares of the audio technology company had gained 1.28% in the past month. In that same time, the Computer and Technology sector gained 5.16%, while the S&P 500 gained 3.84%.

Wall Street will be looking for positivity from HEAR as it approaches its next earnings report date. The company is expected to report EPS of -$0.17, down 142.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.66 million, down 29.86% from the year-ago period.

HEAR's full-year Zacks Consensus Estimates are calling for earnings of $1.12 per share and revenue of $247.12 million. These results would represent year-over-year changes of -63.28% and -14.03%, respectively.

Any recent changes to analyst estimates for HEAR 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.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 12% higher. HEAR is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, HEAR currently has a Forward P/E ratio of 9.21. For comparison, its industry has an average Forward P/E of 28.37, which means HEAR is trading at a discount to the group.

Also, we should mention that HEAR has a PEG ratio of 1.02. 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 1.86 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 110, which puts it in the top 43% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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