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

Zacks Equity Research
Acuity Brands (AYI) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Turtle Beach (HEAR) closed at $10.70 in the latest trading session, marking a -1.11% move from the prior day. This move lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.34%.

Heading into today, shares of the audio technology company had lost 7.28% over the past month, lagging the Computer and Technology sector's gain of 6.46% and the S&P 500's gain of 4.67% in that time.

HEAR will be looking to display strength as it nears its next earnings release, which is expected to be May 8, 2019. In that report, analysts expect HEAR to post earnings of $0.03 per share. This would mark a year-over-year decline of 81.25%. Our most recent consensus estimate is calling for quarterly revenue of $41.70 million, up 1.98% from the year-ago period.

HEAR's full-year Zacks Consensus Estimates are calling for earnings of $0.85 per share and revenue of $244.43 million. These results would represent year-over-year changes of -72.13% and -14.96%, respectively.

Any recent changes to analyst estimates for HEAR should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.6% higher within the past month. HEAR is currently sporting a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that HEAR has a Forward P/E ratio of 12.78 right now. Its industry sports an average Forward P/E of 24.55, so we one might conclude that HEAR is trading at a discount comparatively.

Also, we should mention that HEAR has a PEG ratio of 1.42. 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. HEAR's industry had an average PEG ratio of 2 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 104, which puts it in the top 41% 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.

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

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