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

Zacks Equity Research

Turtle Beach (HEAR) closed at $9.67 in the latest trading session, marking a -1.12% move from the prior day. This move lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 0.58%.

Coming into today, shares of the audio technology company had lost 13.22% in the past month. In that same time, the Computer and Technology sector gained 2.27%, while the S&P 500 gained 1.36%.

Investors will be hoping for strength from HEAR as it approaches its next earnings release, which is expected to be August 12, 2019. On that day, HEAR is projected to report earnings of -$0.17 per share, which would represent a year-over-year decline of 142.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.66 million, down 29.86% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.12 per share and revenue of $247.12 million. These totals would mark changes of -63.28% and -14.03%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for HEAR. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant. HEAR currently has a Zacks Rank of #4 (Sell).

Digging into valuation, HEAR currently has a Forward P/E ratio of 8.73. This represents a discount compared to its industry's average Forward P/E of 28.28.

Also, we should mention that HEAR has a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Communication - Components was holding an average PEG ratio of 1.63 at yesterday's closing price.

The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.

To follow HEAR in the coming trading sessions, be sure to utilize Zacks.com.


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