44.17 +0.64 (1.47%)
Pre-Market: 8:38AM EDT
|Bid||44.41 x 800|
|Ask||44.21 x 1300|
|Day's Range||43.50 - 45.00|
|52 Week Range||31.37 - 48.83|
|Beta (5Y Monthly)||0.82|
|PE Ratio (TTM)||26.71|
|Forward Dividend & Yield||0.74 (1.70%)|
|Ex-Dividend Date||Sep 17, 2019|
|1y Target Est||52.60|
Coronavirus is probably the 1 concern in investors' minds right now. It should be. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW. We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]
For his final "Executive Decision" segment of Mad Money Wednesday evening, Jim Cramer checked back in with Bracken Darrell, CEO of Logitech International S.A. , makers of computer peripherals including video conferencing systems. Darrell said there's a long-term secular trend toward more remote work and the coronavirus pandemic has only accelerated that trend as more people look to replicate at home the video conferencing they have in the office. Logitech is also seeing strength in their other stay-at-home business, gaming.
Logitech International (SIX: LOGN) (NASDAQ: LOGI) has once again been recognized by Fast Company as one of the "Top 10 Most Innovative Companies in Design," as part of the publication’s annual "Most Innovative Companies" (MIC) ranking for 2020.
The suspense is over, and now we all know: COVID-19 has hit the markets like a ton of bricks. After a 8% drop in the last week of February, and enormous volatility to start the month of March, the S&P 500 is down 15% year-to-date.The sudden collapse in stocks comes as oil prices are also plummeting. The sudden fall in oil is hitting energy companies – oil drillers, refiners, and midstreamers – particularly hard, at a time when the sector had already been dealing with low prices. Yesterday was the worst day for oil prices since 1991.While the coronavirus is getting the attention, the immediate cause of the oil collapse was a sudden price war between Russia and Saudi Arabia. Both producers were reeling from the virus’s general impact on the markets, and consequent poor demand for oil; Saudi Arabia led OPEC in a move to cut back output and provide price support, but Russia refused to cooperate and tried to move in on Saudi market share. The Saudis responded by slashing prices – and then the bottom fell out. And now there’s a smell of panic on the trading floors, for both commodities and stocks.But just because the markets sliding hard into correction territory doesn’t mean that there aren’t compelling stock buys out there. After all, the adage is, ‘Buy low, sell high.’ Prices are low right now. We’ve pulled three stocks from the TipRanks database that Wall Street’s analysts are recommending for investors. All have received ratings upgrades, and show upwards of 35% growth potential in the coming months. Let’s take a closer look.Cars.com, Inc. (CARS)Our first stock is a proven survivor – Cars.com was founded back in 1998, and survived the crash of the original dot.com bubble. Today, the company is worth nearly $450 million and is the internet’s second-largest automotive classified ad section.Cars had a rough year in 2019. The stock cratered after a dismal Q2 report, but had begun to recover by year’s end, supported by forecast-beating earnings in both Q3 and Q4. The Q4 results were especially strong, with EPS coming in at 60 cents, 114% higher than expectations. Unfortunately, the coronavirus crash brought the 2H19 momentum to an end, erasing the gains the stock had made.Nevertheless, Cars.com has strengths to recommend it for the long haul. BTIG analyst Marvin Fong points them out, writing, “We believe Cars.com is in the midst of a turnaround that appears to be gaining measured traction and valuation is overly punitive. We expect CARS will deliver significant margin improvement in the back-half of 2020 as one-time costs roll-off and new products begin generating more meaningful revenue… We believe even if the economy experiences a significant downturn, valuation is attractive.”Fong puts a $10 price target on Cars.com, implying a 12-month upside potential of 53%. In line with this, he has upgraded his rating from Neutral to Buy. (To watch Fong’s track record, click here)Overall, CARS shares have 6 Buys and 1 Hold, making the analyst consensus rating a Strong Buy. Shares are deeply discounted, at $6.47, and the average price target of $12.29 suggests a robust upside potential of 90% (See Cars.com’s stock analysis at TipRanks)Logitech International (LOGI)Swiss-based Logitech is a major manufacturer and distributor of home computer and mobile peripheral hardware. The company’s products include keyboards and mouse pointers, webcams, microphones and headsets, and more.Logitech entered calendar year 2020 after a solid fiscal Q3. EPS beat the forecast, coming in at 78 cents compared to 77 expected. At $903 million, revenues edged over the estimates and were up 4% year-over-year. And better yet, LOGI finished 2019 with $656 million cash on hand, up 14% yoy, and with $181 million in quarterly operating cash flow, up 70% sequentially.Strong performance in an adverse market environment will always attract attention, and Wedbush’s Michael Pachter was drawn to Logitech. He sees room here for a 25% upside, as indicated by his $48 price target, and bumped his rating from Neutral to Buy.Supporting his bullishness on LOGI, Pachter writes, “We expect Logitech’s global portfolio of mature businesses coupled with compelling growth stories to not only weather the current market disruption, but thrive within the uncertain environment. We think Logitech’s ability to expand operating margin while mitigating the impact of China tariffs and supply chain disruption underscores management’s agility. Furthermore, we think Logitech is well-positioned to benefit from a shifting culture amid health concerns globally.” (To watch Pachter’s track record, click here.)Logitech’s Moderate Buy consensus rating is based on 5 Buys, 2 Holds, and 1 Sell assigned to the stock in recent weeks. The average price target, $51.03, suggests room for 36% upside potential. (See Logitech stock analysis on TipRanks)Phillips 66 (PSX)Last on our list is a mainstay of the energy industry. Phillips 66 is the modern descendant of the Phillips Petroleum Company, founded in 1927. The modern company is a major producer of natural gas liquids and petrochemicals. Phillips brings in over $120 billion in annual revenues – at least, before the current oil-driven hit to the stock markets.Fortunately for Phillips, the company was performing adequately before the market downturn. In Q4, earnings edged over the estimates and reached $1.54 per share. Quarterly revenues beat the forecast by 8.5%, coming in at $29.6 billion. Both numbers were down year-over-year; the low prices that have plagued the energy industry in recent months (even before today’s debacle) have been the main headwind here.The company has used its positive earnings to keep up its dividend payments. PSX paid out a 90-cent dividend in February, making the annualized payment $3.60 per share for a yield of 5.8%. That yield is almost triple the average dividend yield among energy stocks – and almost 6x the yield of Treasury bonds. Phillips has an 8-history of maintaining and growing its dividend payments.Manav Gupta, reviewing the energy sector for Credit Suisse, is impressed by PSX’s dividend – and its firm position in its field. He upgraded his outlook from Neutral to Buy, and gave the stock a $100 price target, showing his confidence in a 61% upside potential.In his note on energy stocks, Gupta wrote of Phillips, “PSX, with the most diversified earnings stream, we believe is among the best positioned refiners to weather the current macro volatility. We expect an 8-10% dividend hike in 2Q 2020... In the last five years, PSXP has outperformed MPLX by 47%, as the market views PSX’s midstream business model as superior.” (To watch Gupta’s track record, click here.)PSX shares get a Moderate Buy from the analyst consensus, based on 6 Buys against 3 Holds. Shares are currently selling for $62.09, and the average price target of $111.88 indicates a robust 80% upside potential. (See Phillips stock analysis on TipRanks)
There are certain images we have of tech companies, and of the business they're in. But there are often surprises when you look at their bottom line -- products that may seem like a minor sideline actually contribute significantly to their profits. These lesser-known products and divisions can significantly impact the performance of tech stocks.One example is Logitech (NASDAQ:LOGI). People know the company as a manufacturer of personal computer accessories, such as mice and keyboards. But those accessories aren't the only thing driving the company's growth -- up 170% since 2016.Logitech also owns brands popular with music-loving consumers, a "sideline" that's helped it take advantage of the rise in streaming music. This "sideline" includes one of the most popular portable Bluetooth speaker brands: Ultimate Ears. And in 2016, Logitech bought leading wireless earbud brand Jaybird.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn 2019, portable speakers, earbuds and audio gear brought in more than $500 million, over 18% of LOGI's total annual revenue. * 9 Stocks to Buy If People Get Stuck at Home Here are three other tech stocks that make money in a surprising way. Tech Stocks: Amazon (AMZN)Source: Benny Marty / Shutterstock.com Ask the average person how Amazon (NASDAQ:AMZN) makes money and the answer will likely be online retail sales. They may look around their living room and add Alexa-powered Echo smart speakers to the mix.There's no argument that Amazon.com generates a ton of revenue. Online sales for the e-commerce giant hit $141.3 billion in 2019. And in a smart speaker category that's been rapidly growing for several years, Amazon's Echo still holds a commanding 70% lead in U.S. homes.But it's a behind-the-scenes division that actually accounts for the lion's share of Amazon profits. Amazon Web Services (AWS) is a cloud computing enterprise that provides the processing and hosting capabilities that make Amazon.com and Alexa hum. It powers some of the world's most popular apps, websites and services, including Netflix (NASDAQ:NFLX).AWS has also become a primary driver of Amazon stock, generating over 70% of the company's total profits. HP (HPQ)Source: Ken Wolter / Shutterstock.com HP (NYSE:HPQ) was created in 2015 when Hewlett Packard split into two companies. HP focuses primarily on computer and printer sales. In 2019, it was the world's second-largest PC vendor, with 23.9% of the global market.However, the big profit driver for HP isn't computers. It's not printers, which are often sold at cost or even a loss. It's high-margin printer ink.Computers may bring in the revenue, but printing (and primarily replacement ink cartridges) have been accounting for 80% of HPQ's profits. * 8 Stocks to Buy in March for a Coronavirus Rebound With that profit stream under pressure, HP has been fighting to block the use of third-party replacement cartridges. It's also reportedly considering increasing the price of the printers themselves. Apple (AAPL)Source: pio3 / Shutterstock.com Everyone knows the iPhone is Apple's (NASDAQ:AAPL) big revenue and profit machine, even if it has been running out of steam lately. Slumping smartphone sales have been a concern for many tech stocks in recent years.Apple has other product lines to boost revenue, including the Apple Watch, and services like Apple Music.What you may not realize is how big a business AirPods have become for the company. The white wireless earbuds with the weird stem have become an incredibly popular accessory. With multiple generations including the latest AirPods Pro on the market, Apple is projected to sell 85 million pairs in 2020. That's about $15 billion in revenue.One analyst did the math and calculated that if AAPL spun off AirPods into their own business, the resulting company could have a $175 billion valuation. It would be one of America's top-value companies, claiming a spot around No. 30.That's not bad for a "sideline" that was mocked on release.Brad Moon has been writing for InvestorPlace.com since 2012. He also writes about stocks for Kiplinger and has been a senior contributor focusing on consumer technology for Forbes since 2015. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Stocks to Buy If People Get Stuck at Home * 7 Strong Value Stocks to Buy for 2020 * 5 High-Yield Dividend Stocks With Great Buyback Programs The post The Surprising Ways These 3 Tech Stocks Make Money appeared first on InvestorPlace.
Logitech International said on Tuesday supply problems caused by the coronavirus outbreak will dent its full year profit, as it gave its outlook for the next financial year. The maker of computer mice and keyboards for players of Fortnite and League of Legends, said it expected operating profit for the year to the end of March 2020 in the range of $365 million to $375 million, down from its previous view for $375 million to $385 million. The Swiss-U.S. company said it expected sales to increase in the mid-single digit range in its 2021 financial year, and operating income to rise to $380 million to $400 million, it said, ahead of its investor day in New York.
In advance of a meeting to be held with financial analysts and investors in New York, Logitech International (SIX:LOGN) (Nasdaq:LOGI) today:
Logitech G, a brand of Logitech (NASDAQ: LOGI) and Herman Miller (NASDAQ: MLHR), today announced an exclusive partnership to research, design, and manufacture the next generation high-performance furniture solutions for gamers. Both companies bring years of design and engineering expertise in their respective fields, and combined will address the needs of esports athletes, gamers, and streamers.
Today, Ultimate Ears expands its award-winning lineup of portable BluetoothⓇ speakers with Ultimate Ears HYPERBOOM, the brand’s loudest and bassiest speaker yet, rocking triple the loudness and more than six times the bass of MEGABOOM 3. This new speaker needs no hype; HYPERBOOM keeps any party going with its booming bass, a wide dynamic range that brings your music to life, rendering every note in rich detail, and a rechargeable 24-hour battery*.
Today, Logitech introduced Logitech® StreamCam, a new webcam designed with streamers and content creators in mind. StreamCam features 1080p/60 fps video, USB-C connectivity, and flexible mounting options. StreamCam is even more powerful when used with Logitech Capture. Capture unlocks features on StreamCam that automate exposure, framing, and stabilization, so creators can focus on making their best content.
Logitech today announced that the company received 25 design award wins across five brands by the 2020 iF DESIGN™ Awards and 2019 GOOD DESIGN™ Awards.
Today, Logitech announced it is expanding its video conferencing solutions for the entire work environment and enhancing the personal workspace with its upcoming Zone Wired headset. With this new headset, Logitech now has a complete modern portfolio of both wired and wireless headsets giving customers flexibility to choose the right solution for their preferences. Whether you’re in an open office or working remotely, Logitech Zone headsets make it even easier to focus and work from anywhere.
It's finally here: earnings season.And while positioning through the event can lead to above-average and quicker returns, it can also be very risky business. That's especially relevant in today's "priced-for-perfection" market environment. So, to better guard against those risks, let's look at three recent earnings beats -- also backed by price action and charts -- that are worthy of stronger risk-adjusted positioning.Overall, the reality of how a stock reacts to earnings -- even an earnings beat -- is a crapshoot at best. When it comes to quarterly reports, one plus one often leads to an answer other than two. And if the market is always right, it simply doesn't matter if your calculator, spreadsheets and charts are telling you something different.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe bottom line, and more than ever, is that being selective and investing in stronger risk-adjusted situations matters. It's time to be patient and wait on companies that deliver the quarterly goods, enjoy investor support and only buy stocks with price charts that don't look like a bull on its last legs. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy So, let's take a closer look. Earnings Beats to Buy: IBM (IBM) Click to Enlarge Source: Charts by TradingView IBM (NYSE:IBM) is the first of our earnings beats to buy. The blue-chip tech outfit didn't blast Street estimates, and sales were largely flat year-over-year. However, the company's high-value mix, productivity, improved gross margins and strong free cash flow still make it a name to consider.Additionally, there's other reasons to like IBM stock in today's market. The company delivered surprisingly strong numbers, which suggest a bullish mainframe cycle is just underway. There's also an above-the-market, and well-supported dividend payout of around 4.5% to consider with this earnings beat.Lastly, Wall Street was on board with the IBM's results. And technically, a very large and constructive double-bottom looks ready to clear angular resistance and the 62% retracement level after confirming an uptrend off 2019's bottom.Overall, this earnings beat is a buy on a modified breakout above $145. I'd suggest a stop-loss below $134, as that's sensible on the wallet and the price chart. On the upside, taking partial profits near $170 and pattern highs is an equally smart business decision. Logitech (LOGI) Click to Enlarge Source: Charts by TradingView Logitech (NASDAQ:LOGI) is our next earnings beat to buy. The Swiss-based computer hardware giant topped consensus views on the back of solid demand for the company's gaming gear, PC peripherals and video-conferencing products.The report showed LOGI stock is clearing tough 2018 comps tied to that year's Fortnite frenzy. What's more, sales of simulation gear are growing strongly for Logitech -- and its recent Streamlabs acquisition puts the company in the center of the increasingly popular live-streaming market.Investors have been hitting the buy button on their gaming consoles this week, and now it's time to join them. * Forget Lockheed Martin, Buy These 5 Smaller Defense Stocks Instead Technically, shares of this earnings beat have just cleared a corrective cup-shaped base to new all-time-highs. I'd set a price target of $60 based on a conservative measured move out of the pattern. And to ensure protection against larger potential losses, an exit below $46 would be a no-brainer. Netflix (NFLX) Click to Enlarge Source: Charts by TradingView Netflix (NASDAQ:NFLX) is the last of our earnings beats to buy, as the report wasn't without its flaws. Furthermore, disappointing guidance, slower-than-expected subscriber growth in Netflix's North American market and competition fears helped bears and profit-takers put together a decline of about 4% in the immediate aftermath. But, at the end of day -- literally and figuratively -- things are looking up for NFLX stock.The fact of the matter is the subscription video on demand (SVOD) giant surpassed earnings and sales forecasts in the face of new streaming platforms rolled out by Disney (NYSE:DIS) and Apple (NASDAQ:AAPL). Moreover, global gains are where NFLX stock's future growth lies. And the company continues to deliver, demonstrating its value-add proposition for its subscribers over the competition.Technically speaking, this earnings beat is also looking up. Aside from investors backing away from their initial impression of the report, NFLX stock has formed a solid-looking weekly hammer candlestick. With the pattern well-positioned to clear channel and 62% resistance within Netflix's larger W-base structure, a momentum entry looks increasingly attractive.For positioning in Netflix stock, I'd suggest buying on strength as shares breakout above $360. Look to take some risk off the table in-between $400-$425 for obvious reasons. And with the week coming to a close and investors showing their hand, a stop-loss below $334 looks like sufficient leeway off and on the price chart for this earnings beat.Investment accounts under Christopher Tyler's management do not currently own positions in securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post 3 Earnings Beats to Buy As Another Huge Week Approaches appeared first on InvestorPlace.
In his second "Executive Decision" segment of Mad Money Tuesday evening, Jim Cramer also sat down with Bracken Darrell, president and CEO of Logitech International , the computer peripheral maker that just posted a 7-cents-a-share earnings beat with a 4% rise in revenues. Darrell said that despite currency and tariff pressures, Logitech was still able to see strong gross margins and continues to grow all three of its businesses. Video conferencing remains strong, he said.
Similar to how Nike and Under Armour sell athletic gear to aspiring sports stars, consumer electronics firms are pitching premium video and audio gear to digital content creators.
Logitech's (LOGI) third-quarter fiscal 2020 results are likely to reflect a healthy video collaboration business. However, higher tariffs are expected to have kept margins under pressure.
Logitech (LOGI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.