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

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In the latest trading session, Turtle Beach (HEAR - Free Report) closed at $17.61, marking a -0.96% move from the previous day. The stock lagged the S&P 500's daily loss of 0.55%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 1.16%.

Prior to today's trading, shares of the audio technology company had lost 23.08% over the past month. This has lagged the Computer and Technology sector's loss of 1.81% and the S&P 500's gain of 0.37% in that time.

Investors will be hoping for strength from HEAR as it approaches its next earnings release, which is expected to be November 1, 2018. On that day, HEAR is projected to report earnings of $0.47 per share, which would represent year-over-year growth of 1275%. Our most recent consensus estimate is calling for quarterly revenue of $65.83 million, up 82.97% from the year-ago period.

HEAR's full-year Zacks Consensus Estimates are calling for earnings of $2.17 per share and revenue of $257.97 million. These results would represent year-over-year changes of +1004.17% and +72.98%, respectively.

Any recent changes to analyst estimates for HEAR should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note HEAR's current valuation metrics, including its Forward P/E ratio of 8.22. For comparison, its industry has an average Forward P/E of 20.3, which means HEAR is trading at a discount to the group.

It is also worth noting that HEAR currently has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Communication - Components stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.

The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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