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

In the latest trading session, Turtle Beach (HEAR) closed at $15.06, marking a +0.2% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.58%. At the same time, the Dow lost 1.99%, and the tech-heavy Nasdaq lost 1.63%.

Prior to today's trading, shares of the audio technology company had gained 1.76% over the past month. This has outpaced the Computer and Technology sector's loss of 2.81% and the S&P 500's loss of 6.62% in that time.

Wall Street will be looking for positivity from HEAR as it approaches its next earnings report date. This 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.65 per share and revenue of $270.44 million, which would represent changes of +1204.17% and +81.34%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for HEAR. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. HEAR is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, HEAR is currently trading at a Forward P/E ratio of 5.68. For comparison, its industry has an average Forward P/E of 17.55, which means HEAR is trading at a discount to the group.

Investors should also note that HEAR has a PEG ratio of 0.38 right now. 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. Communication - Components stocks are, on average, holding a PEG ratio of 1.57 based on yesterday's closing prices.

The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% 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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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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