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Bull of the Day: Cirrus Logic (CRUS)

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Cirrus Logic (CRUS - Free Report)  has become one of the more intriguing semiconductor suppliers as a developer of low-power, high-precision mixed signal processing solutions.

Increasing demand for Cirrus Logic’s portfolio of High-Performance Mixed Signal (HPMS) audio components lands its stocks a Zacks Rank #1 (Strong Buy) and the Bull of the Day.

 

Strong Financial Performance & Consistency

Most exhilarating about Cirrus Logic’s financial performance is that the company has now surpassed the Zacks EPS Consensus for 13 consecutive quarters dating back to July of 2021.

Even better, Cirrus Logic has crushed earnings expectations in its last four quarterly reports posting an average EPS surprise of 56.6%. Cirrus Logic most recently blasted its fiscal first quarter EPS estimates by 80% in August with earnings at $1.12 per share compared to estimates of $0.62 a share.

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Positive EPS Revisions

With Circus Logic’s fiscal second quarter earnings approaching in early November, CRUS is benefitting from a positive trend of earnings estimate revisions.

Over the last 90 days, Q2 EPS estimates have remained 17% higher (Current QTR). Full-year EPS estiamtes for Cirrus Logic's current fiscal 2025 have risen 3% in the last seven days and are now up 8% over the last three months. Plus, FY26 EPS estimates have risen 1% over the last week and are up 2% in the last 90 days.

Cirrus Logic's annual earnings are now expected to rise 1% in FY25 and are slated to increase another 5% in FY26 to $7.03 per share. 

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Top-Line Growth

Having a niche in regards to semiconductor products and solutions for the smartphone and laptop markets, Cirrus Logic’s top line expansion has remained attractive as well with total sales expected to increae 3% in FY25 and projected to rise another 6% in FY26 to $1.95 billion.

 

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CRUS Performance & Valuation

As one of the stock market’s better performers, CRUS has soared +40% this year which has roughly matched its Zacks Electronics-Semiconductors Market while impressively topping the benchmark S&P 500 and the Nasdaq’s gains of just over +20%.

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Reassuringly, Cirrus Logic’s stock trades at just 18.6X forward earnings and at a pleasant discount to its electronics-semiconductors industry average of 33.3X and the benchmark’s 24.8X.

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Bottom Line

Considering the premiums many semiconductor stocks can command, Cirrus Logic’s valuation is very enticing. Now appears to be a good time to buy with earnings estimate revisions on the rise which further bolsters Cirrus Logic’s appealing P/E valuation and alludes to the notion that the company’s strong financial performance should continue. 


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