Turtle Beach (HEAR) Dips More Than Broader Markets: What You Should Know

An image of stock prices rising and declining in value Credit: Shutterstock photo

In the latest trading session, Turtle Beach (HEAR) closed at $15.01, marking a -1.77% move from the previous day. This move lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.4%, and the Nasdaq, a tech-heavy index, 0%.

Coming into today, shares of the audio technology company had lost 20.5% in the past month. In that same time, the Computer and Technology sector lost 5.26%, while the S&P 500 lost 1.27%.

HEAR will be looking to display strength as it nears its next earnings release, which is expected to be March 5, 2019. The company is expected to report EPS of $1.04, down 10.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $94.33 million, up 18.36% from the prior-year quarter.

HEAR's full-year Zacks Consensus Estimates are calling for earnings of $2.65 per share and revenue of $270.44 million. These results would represent year-over-year changes of +1204.17% and +81.34%, respectively.

Investors might also notice recent changes to analyst estimates for HEAR. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 7.15% higher. HEAR is currently a Zacks Rank #3 (Hold).

In terms of valuation, HEAR is currently trading at a Forward P/E ratio of 5.77. This represents a discount compared to its industry's average Forward P/E of 17.31.

We can also see that HEAR currently has a PEG ratio of 0.38. 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 1.63 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 82, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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