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Here's Why You Need to Keep an Eye on Cirrus Logic (CRUS)
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Cirrus Logic (CRUS - Free Report) appears to be a promising stock to add to the portfolio in tackling the current macroeconomic and geopolitical uncertainties, and benefit from its healthy fundamentals and growth prospects.
Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or 2 and a Growth Score of A or B offer solid investment opportunities.
The company has an impressive earnings surprise history. CRUS outpaced the Zacks Consensus Estimate in all the trailing four quarters, delivering an average earnings surprise of 32.4%.
The stock has lost 10% in the past year compared with the sub-industry’s decline of 18.5%. It is still trading 10% below its 52-week high of $94.37 on Jan 14, 2022, making it relatively affordable for investors.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2022 earnings is pegged at $5.91 per share. For 2023, the Zacks Consensus Estimate for earnings is pegged at $6.55 per share, indicating a year-over-year increase of 10.9%. The stock has a long-term earnings per share growth expectation of 3.4%.
For 2022 and 2023, the company’s revenue estimates are pegged at $1.84 billion and $1.94 billion, indicating year-over-year growth of 3.3% and 5.5%, respectively.
Factors Driving Growth
Headquartered in Austin, TX, Cirrus Logic is a fabless semiconductor supplier, which develops, manufactures and markets analog, mixed-signal and audio DSP integrated circuits.
Cirrus Logic’s performance is benefiting from continued momentum across its high-performance mixed-signal and audio segments. The company plans to expand its product line by investing in next-generation technology like wearables, gaming and augmented/virtual reality.
Further, the company plans to develop 22-nanometer smart codec and custom-boosted amplifier to expand its footprint in the audio market. The company expects its SAM to cross $1 billion by 2026.
Increased adoption of camera controllers is a tailwind. The company’s strong balance sheet with no long-term debt and share repurchase policy are also noteworthy.
However, the company's near-term prospects look gloomy as it may not be able to fully capitalize on opportunities from strong demand due to global supply-chain constraints. Stiff competition is an added concern.
Other Stocks to Consider
Investors interested in the broader technology space may also consider stocks like Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Pure Storage (PSTG - Free Report) . While Arista and Jabil sport a Zacks Rank #1 (Strong Buy), Pure Storage carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.37 per share, unchanged in the past 60 days. The long-term earnings
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 11.4% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.31 per share, rising 1.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 9.8% in the past year.
The Zacks Consensus Estimate for Pure Storage’s fiscal 2023 earnings is pegged at $1.28 per share, up 8.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 21.3%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 156%. Shares of PSTG have declined 4.1% in the past year.
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Here's Why You Need to Keep an Eye on Cirrus Logic (CRUS)
Cirrus Logic (CRUS - Free Report) appears to be a promising stock to add to the portfolio in tackling the current macroeconomic and geopolitical uncertainties, and benefit from its healthy fundamentals and growth prospects.
CRUS has the favorable combination of a Growth Score of A and carries a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or 2 and a Growth Score of A or B offer solid investment opportunities.
The company has an impressive earnings surprise history. CRUS outpaced the Zacks Consensus Estimate in all the trailing four quarters, delivering an average earnings surprise of 32.4%.
The stock has lost 10% in the past year compared with the sub-industry’s decline of 18.5%. It is still trading 10% below its 52-week high of $94.37 on Jan 14, 2022, making it relatively affordable for investors.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2022 earnings is pegged at $5.91 per share. For 2023, the Zacks Consensus Estimate for earnings is pegged at $6.55 per share, indicating a year-over-year increase of 10.9%. The stock has a long-term earnings per share growth expectation of 3.4%.
For 2022 and 2023, the company’s revenue estimates are pegged at $1.84 billion and $1.94 billion, indicating year-over-year growth of 3.3% and 5.5%, respectively.
Factors Driving Growth
Headquartered in Austin, TX, Cirrus Logic is a fabless semiconductor supplier, which develops, manufactures and markets analog, mixed-signal and audio DSP integrated circuits.
Cirrus Logic’s performance is benefiting from continued momentum across its high-performance mixed-signal and audio segments. The company plans to expand its product line by investing in next-generation technology like wearables, gaming and augmented/virtual reality.
Further, the company plans to develop 22-nanometer smart codec and custom-boosted amplifier to expand its footprint in the audio market. The company expects its SAM to cross $1 billion by 2026.
Increased adoption of camera controllers is a tailwind. The company’s strong balance sheet with no long-term debt and share repurchase policy are also noteworthy.
However, the company's near-term prospects look gloomy as it may not be able to fully capitalize on opportunities from strong demand due to global supply-chain constraints. Stiff competition is an added concern.
Other Stocks to Consider
Investors interested in the broader technology space may also consider stocks like Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Pure Storage (PSTG - Free Report) . While Arista and Jabil sport a Zacks Rank #1 (Strong Buy), Pure Storage carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.37 per share, unchanged in the past 60 days. The long-term earnings
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 11.4% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.31 per share, rising 1.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 9.8% in the past year.
The Zacks Consensus Estimate for Pure Storage’s fiscal 2023 earnings is pegged at $1.28 per share, up 8.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 21.3%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 156%. Shares of PSTG have declined 4.1% in the past year.