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Knowles (KN), Lucid Hearing Partner for Enhanced Hearing Aids

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Knowles Corporation (KN - Free Report) recently augmented its portfolio by introducing a new two-way balanced armature receiver in hearing aids to boost the audio capabilities of hearing-impaired persons. The product was developed in collaboration with Lucid Hearing, a pioneering company delivering hearing aid solutions to enable people of all ages to hear better with natural sound quality and reduced distortion.

The new product is likely to enable the users to experience audiophile-quality music performance. The Westone Audio High Fidelity DWT is a premium hearing aid with a Receiver in Canal that enhances sound quality for music-listening for the hearing impaired. The product is a culmination of continuous R&D efforts and converges the best of hearing health solutions with music-listening capabilities to feel the pulse of music better. The balanced armature receiver from Knowles offers discreet size for a comfortable fit, long battery life for all-day wear and unmatched sound clarity for optimal vocal and full-spectrum sound.

Headquartered in Itasca, IL, Knowles is a premier provider of advanced micro-acoustic, audio processing and precision device solutions, serving the mobile consumer electronics, communications, medical, defense, automotive and industrial markets. Leveraging its leading position in MEMS (micro-electro-mechanical systems) microphones and strong capabilities in audio processing technologies, the company optimizes audio systems and improves user experience in mobile, ear, and IoT applications. Knowles also offers acoustic components, high-end capacitors and mmWave RF solutions for diverse markets.

Proprietary manufacturing techniques and global scale of operations have facilitated the company to fine-tune its business with the evolving customer demands and invest in high-value solutions. The transformation from an acoustic component supplier to an audio solutions provider has enabled the company to migrate to higher-value solutions and increase content per device. This, in turn, has empowered it to capitalize on the positive macro trends in audio and edge processing solutions.

Voice-powered interactions are fast emerging as a critical and necessary feature as consumers tend to engage with technology through natural, spoken commands across the mobile, ear and IoT platforms. This has led to a wide proliferation of products ranging from mobile phones to headsets and smart speakers to household appliances. Knowles aims to capitalize on its unique capabilities in acoustics, digital signal processing and algorithms to cater to these demands.

The stock has gained 28.4% over the past year compared with the industry’s rise of 16.1%. We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.

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A better-ranked stock in the broader industry is Watts Water Technologies, Inc. (WTS - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Watts Water has a long-term earnings growth expectation of 8% and delivered an earnings surprise of 14.6%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 4.6% in the past 90 days. Watts Water aims to continuously launch smart and connected products, which are likely to provide it with a competitive edge in the marketplace.

Transcat, Inc. (TRNS - Free Report) , carrying a Zacks Rank #2, is another solid pick for investors. It has a long-term earnings growth expectation of 8% and delivered an earnings surprise of 37.2%, on average, in the trailing four quarters.

Earnings estimates for the next year for the stock have moved up 7.1% in the past 90 days. The shares of Transcat have moved up a stellar 203% over the past year.

Sierra Wireless, Inc. (SWIR - Free Report) carries a Zacks Rank #2. It has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 34.2%, on average, in the trailing four quarters.

Over the past year, Sierra Wireless has gained a solid 60.5%. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.