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Should Value Investors Buy Turtle Beach (HEAR) Stock?

Zacks Equity Research
·2 min read

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Turtle Beach (HEAR). HEAR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 19.27. This compares to its industry's average Forward P/E of 21.09. HEAR's Forward P/E has been as high as 61.32 and as low as -14,715.47, with a median of 15.12, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HEAR has a P/S ratio of 1.05. This compares to its industry's average P/S of 1.37.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Turtle Beach is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HEAR feels like a great value stock at the moment.


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