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Here's Why You Should Add Logitech (LOGI) to Your Portfolio

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Logitech International S.A. (LOGI - Free Report) is one stock that investors should consider adding to their portfolio to benefit from its upside potential. Earnings estimates for the company’s current and next fiscal years have increased, implying robust inherent growth potential.

The Zacks Consensus Estimate for fiscal 2024 earnings has been revised 11 cents upward over the past 60 days to $3.88 per share. The consensus mark for fiscal 2025 earnings has been revised 2 cents upward to $4.10 per share in the past 60 days. Additionally, it has a long-term earnings growth expectation of 13.1%. It delivered a solid earnings surprise of 39.8%, on average, in the trailing four quarters.

The stock also has a favorable combination of a Zacks Rank #2 (Buy) and a Growth Score of A. The Growth Style Score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and a Growth Score of A or B offer solid investment opportunities.

With healthy fundamentals, the stock appears to be a solid investment option at the moment.

Growth Drivers

Logitech’s stronger-than-expected third-quarter fiscal 2024 results have boosted investors’ confidence in its recovery from the post-pandemic downturn. The growing trend of hybrid work is likely to raise the demand for its keyboards & combos, video collaboration and pointing device tools. Thriving cloud-based video conferencing services continue to be its key driver.

The expanding adoption of new mobile platforms in both mature and emerging markets is driving the demand for LOGI’s peripherals and accessories. The company has been able to capitalize on its software and go-to-market capabilities to boost its market share.

Logitech plans to harness the promising market for accessories through innovation and expansion of its product lines. The company has been offering innovative products like the fastest-performing mouse and keyboard switches, wireless mouse with the longest battery and multi-device keyboards, among others. Over the past few years, LOGI has launched multiple offerings to acquire a greater market share.

The acquisition of Finland’s Loupedeck in July 2023 has deepened LOGI’s ability to provide contextual control experiences and customizable products for its entire portfolio of devices, including the Logitech Software Roadmap solution. Loupedeck offers deep native integrations with industry-leading creative software for video editing, photo editing, retouching, color grading design and streaming. Its custom consoles combine analog control with digital precision to offer power and flexibility to creators. With this acquisition, the company is benefiting from Loupedeck’s strong and growing developer community that further helps it advance innovation and empower gamers, creators and streamers.

Moreover, Gartner's latest global IT spending forecast brings encouraging prospects for Logitech. The report states that the worldwide IT spending is estimated to increase 6.8% year over year to $5 trillion in 2024 despite the worldwide economic turbulence. The research firm anticipates global spending on devices and software to grow 4.6% and 12.7%, respectively, on a year-over-year basis in 2024. This bodes well for LOGI’s prospects in the near term.

Other Stocks to Consider

Some other top-ranked stocks from the broader technology sector are NVIDIA (NVDA - Free Report) , Bill Holdings (BILL - Free Report) and Bentley Systems (BSY - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NVIDIA’s 2024 earnings per share has been revised upward by 4 cents to $23.84 in the past seven days. Shares of NVDA have skyrocketed 223.1% in the past year.

The Zacks Consensus Estimate for Bill Holdings’ 2024 earnings per share has been revised by 32 cents northward to $2.44 in the past 60 days. Shares of BILL have lost 13.5% in the past year.

The Zacks Consensus Estimate for Bentley Systems' 2024 earnings per share has been revised upward by 3 cents to $1.02 in the past 60 days. Shares of BSY have gained 20.7% in the past year.

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