Markets

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

Turtle Beach (HEAR) closed the most recent trading day at $17.12, moving -0.52% from the previous trading session. This move lagged the S&P 500's daily gain of 0.29%. Elsewhere, the Dow lost 0.24%, while the tech-heavy Nasdaq added 0.28%.

Prior to today's trading, shares of the audio technology company had gained 16.2% over the past month. This has outpaced the Computer and Technology sector's gain of 4.98% and the S&P 500's gain of 2.96% in that time.

Investors will be hoping for strength from HEAR as it approaches its next earnings release. The company is expected to report EPS of $0.29, up 583.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $75.55 million, up 82.8% from the prior-year quarter.

HEAR's full-year Zacks Consensus Estimates are calling for earnings of $0.56 per share and revenue of $261.80 million. These results would represent year-over-year changes of -46.15% and +11.56%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 has moved 273.33% higher within the past month. HEAR is currently a Zacks Rank #1 (Strong Buy).

Investors should also note HEAR's current valuation metrics, including its Forward P/E ratio of 30.73. For comparison, its industry has an average Forward P/E of 28.59, which means HEAR is trading at a premium to the group.

The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.

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