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Bull Of The Day: Corsair Gaming (CRSR)

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Corsair Gaming (CRSR - Free Report) is a Zacks Rank #1 (Strong Buy) and it is the Bull of the Day today.  This stock is a play on the gaming sector and this stock has all the bases covered for that sector.  There are hardware solutions, streaming solutions and even software.  If the pandemic did anything, it made a lot of gamers a lot more committed to their chosen path and having the best equipment is viewed more as an investment than anything else. 

As the Bull of the Day, we take a look at the obvious reason to put a stock on your radar screen… then look at why it has become a Zacks Rank #1 (Strong Buy).  Let’s take at why this stock has reached the highest Zacks Rank.

Description

Corsair Gaming, Inc., together with its subsidiaries, designs, markets, and distributes gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. The company offers gamer and creator peripherals, including gaming keyboards, mice, headsets, and controllers, as well as capture cards, studio accessories, and others. It also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs, and others; and PC gaming software comprising iCUE for gamers and Elgato's streaming suite for content creators. The company sells its products through a network of distributors and retailers, including online retailers, as well as directly to consumers through its websites. Corsair Gaming, Inc. was founded in 1994 and is headquartered in Fremont, California.

Earnings History

I see only one quarterly report so far for CRSR and it was a solid beat.  That is a very good sign as the first quarter of a public company is often a miss that carries a lot of previous baggage with it.  Seeing that first beat is a good sign.

Earnings Estimates

I see the Zacks Consensus Estimate moving higher and higher for CRSR.  The current quarter started out at 21 cents, but moved to 36 cents and then to 41 cents.

Next quarter has seen a nice move here has well, increasing 50% over the last 60 days.

The full year numbers are inching higher and they are what is really driving the Zacks Rank.

Valuation

I see a 25x forward PE, which is a little high, but when we see the 60% topline growth in the most recent quarter I am fine with that PE.  I see a 8.6x price to book multiple, but that could move a lot higher as this is an asset slim business.  This is a relatively new stock, so there isn’t a lot of data just yet… but from what I have seen of this stock I like it.

Chart

 

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