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Logitech (LOGI) Gains But Lags Market: What You Should Know

Logitech (LOGI) closed at $82.55 in the latest trading session, marking a +1.35% move from the prior day. This change lagged the S&P 500's 1.62% gain on the day. Elsewhere, the Dow gained 1.54%, while the tech-heavy Nasdaq added 1.31%.

Coming into today, shares of the maker of keyboards, webcams and other computer accessories had lost 5.1% in the past month. In that same time, the Computer and Technology sector gained 2.55%, while the S&P 500 gained 3.4%.

LOGI will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.08, up 28.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.23 billion, up 35.91% from the year-ago period.

LOGI's full-year Zacks Consensus Estimates are calling for earnings of $4.12 per share and revenue of $4.16 billion. These results would represent year-over-year changes of +91.63% and +39.65%, respectively.

Any recent changes to analyst estimates for LOGI should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LOGI is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that LOGI has a Forward P/E ratio of 19.77 right now. For comparison, its industry has an average Forward P/E of 29.95, which means LOGI is trading at a discount to the group.

The Computer - Peripheral Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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