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Why Should You Hold Logitech (LOGI) Stock in Your Portfolio?

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Logitech (LOGI - Free Report) is riding on numerous growth drivers, including its cloud-based video-conferencing services, strategic product launches and restructuring actions. Solid performance across its Gaming business is also a key catalyst.

Notably, the company surpassed the Zacks Consensus Estimate in each of the trailing four reported quarters, delivering an average positive surprise of 17.9%.

With expected long-term earnings per share growth rate of 10% and a market cap of $4.81 billion, investors need to consider retaining it in their portfolio for long-term gains.

Let’s delve deeper and analyze the stock’s prospects.

Growth Drivers

Growing adoption of new mobile platforms in both mature and emerging markets is fueling the demand for Logitech’s peripherals and accessories.

We note that robust sales across product categories and strong momentum in Video Collaboration, Gaming, and Tablet & Accessories businesses are helping the company boost its top line. The company’s cloud-based video conferencing services are also a key growth driver.

This apart, its acquired company Jaybird is helping Logitech expand its current product portfolio to address customers who prefer headphones over speakers, by constantly coming up with new products. Moreover, its recent acquisition of Blue Headphones is also expected to be a key growth driver.

Additionally, Logitech has been making efforts to increase returns to its investors through share repurchases and dividend hikes. In September this year, Logitech announced that its shareholders will be paid a higher dividend, almost 10% more than last year. Such initiatives enhance shareholders’ confidence in the stock. This apart, Logitech’s solid financial health also allows it to take up acquisitions to boost core business areas.

Zacks Rank & Stocks to Consider

Logitech currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Computer and Technology sector are Synopsys, Inc. (SNPS - Free Report) , eGain (EGAN - Free Report) and Symantec Corporation , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Synopsys, eGain and Symantec is projected to be 10%, 30% and 7.9%, respectively.

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