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Here's Why Turtle Beach (HEAR) Seems a Smart Investment Pick
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Shares of Turtle Beach Corporation (HEAR - Free Report) have surged 69% over the past year, driven by solid demand trends and healthy customer additions. Its current fiscal-year earnings estimates have skyrocketed 1700% over the past year, implying robust growth potential.
Headquartered in White Plains, NY, Turtle Beach develops, commercializes and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices under the Turtle Beach brand. The company is well-positioned to benefit from quality products and enjoys a solid foothold in its served markets. Its headsets are suited for learning and working remotely via video or audio conferencing.
Turtle Beach has made significant waves in the gaming industry with the recent acquisition of PDP, a premier gaming accessories provider, for an enterprise value of $118 million. This strategic move underscores Turtle Beach's commitment to fortifying its position in the gaming peripherals market.
The acquisition brings together two powerhouse companies renowned for their innovative products and robust growth trajectories. PDP's expertise in designing and distributing aftermarket gaming accessories, such as controllers and headsets, perfectly complements Turtle Beach's existing portfolio. This merger is poised to unlock synergies and create a formidable force in the gaming peripherals segment.
The combined entity is likely to generate total revenues ranging from $390 to $410 million in the first full 12 months post-acquisition according to industry experts. Furthermore, post-synergy adjusted EBITDA for PDP is projected to reach $22 million to $28 million during the same period, showcasing the financial prowess of the merged entity.
One of the key highlights of the deal is the substantial cost synergies expected to materialize, with anticipated annual run-rate savings of $10 million to $12 million. This, coupled with potential revenue synergies and best practice sharing, is poised to enhance the financial performance of the company.
From Turtle Beach's perspective, the acquisition of PDP represents a significant milestone in its journey toward becoming a dominant player in the gaming peripherals market. With an expanded product portfolio, enhanced scale and strengthened market positioning, the combined entity is well-positioned to capitalize on the burgeoning demand for gaming accessories.
Turtle Beach has a VGM Score of A. With a long-term earnings growth expectation of 16%, this stock appears to be an enticing investment option for the volatile market.
Other Key Picks
Based in Finland, Nokia Corporation (NOK - Free Report) is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. Its installed base of high-capacity AirScale products, which enables customers to upgrade to 5G quickly, is growing fast.
Nokia’s end-to-end portfolio includes products and services for every part of a network, which are helping operators to enable key 5G capabilities, such as network slicing, distributed cloud and industrial IoT. Accelerated strategy execution, sharpened customer focus and reduced long-term costs are expected to position the company as a global leader in the delivery of end-to-end 5G solutions. This Zacks Rank #2 stock has a long-term earnings growth expectation of 9.4%. It has a VGM Score of A.
AudioCodes Ltd. (AUDC - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 24.8% and delivered an earnings surprise of 20.1%, on average, in the trailing four quarters.
Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
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Here's Why Turtle Beach (HEAR) Seems a Smart Investment Pick
Shares of Turtle Beach Corporation (HEAR - Free Report) have surged 69% over the past year, driven by solid demand trends and healthy customer additions. Its current fiscal-year earnings estimates have skyrocketed 1700% over the past year, implying robust growth potential.
Despite intense market volatility, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Growth Drivers
Headquartered in White Plains, NY, Turtle Beach develops, commercializes and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices under the Turtle Beach brand. The company is well-positioned to benefit from quality products and enjoys a solid foothold in its served markets. Its headsets are suited for learning and working remotely via video or audio conferencing.
Turtle Beach has made significant waves in the gaming industry with the recent acquisition of PDP, a premier gaming accessories provider, for an enterprise value of $118 million. This strategic move underscores Turtle Beach's commitment to fortifying its position in the gaming peripherals market.
The acquisition brings together two powerhouse companies renowned for their innovative products and robust growth trajectories. PDP's expertise in designing and distributing aftermarket gaming accessories, such as controllers and headsets, perfectly complements Turtle Beach's existing portfolio. This merger is poised to unlock synergies and create a formidable force in the gaming peripherals segment.
The combined entity is likely to generate total revenues ranging from $390 to $410 million in the first full 12 months post-acquisition according to industry experts. Furthermore, post-synergy adjusted EBITDA for PDP is projected to reach $22 million to $28 million during the same period, showcasing the financial prowess of the merged entity.
One of the key highlights of the deal is the substantial cost synergies expected to materialize, with anticipated annual run-rate savings of $10 million to $12 million. This, coupled with potential revenue synergies and best practice sharing, is poised to enhance the financial performance of the company.
From Turtle Beach's perspective, the acquisition of PDP represents a significant milestone in its journey toward becoming a dominant player in the gaming peripherals market. With an expanded product portfolio, enhanced scale and strengthened market positioning, the combined entity is well-positioned to capitalize on the burgeoning demand for gaming accessories.
Turtle Beach has a VGM Score of A. With a long-term earnings growth expectation of 16%, this stock appears to be an enticing investment option for the volatile market.
Other Key Picks
Based in Finland, Nokia Corporation (NOK - Free Report) is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. Its installed base of high-capacity AirScale products, which enables customers to upgrade to 5G quickly, is growing fast.
Nokia’s end-to-end portfolio includes products and services for every part of a network, which are helping operators to enable key 5G capabilities, such as network slicing, distributed cloud and industrial IoT. Accelerated strategy execution, sharpened customer focus and reduced long-term costs are expected to position the company as a global leader in the delivery of end-to-end 5G solutions. This Zacks Rank #2 stock has a long-term earnings growth expectation of 9.4%. It has a VGM Score of A.
AudioCodes Ltd. (AUDC - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 24.8% and delivered an earnings surprise of 20.1%, on average, in the trailing four quarters.
Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.