Logitech (LOGI Quick QuoteLOGI - Free Report) shares have soared 20.3% over the past year, outperforming the Zacks Computer - Peripheral Equipment industry’s decline of 14.2%. This outperformance reflects investors’ growing optimism about Logitech, which has been trying to recover from the post-pandemic downturn. The company is constantly trying to enrich its portfolio with new product launches to drive sales.

Logitech recently expanded its Bluetooth speaker portfolio with MINIROLL under the Ultimate Ears brand. LOGI launched this product on customer request as they wanted a portable speaker that could be carried anywhere strapped to their outfit.

This lightweight and compact speaker weighs 279 grams and comes with a waterproof, dustproof and drop-proof build. The speaker features a custom driver, bass radiators and autocast technology. The autocast technology enables users to connect as many miniroll speakers as they want to connect. The speaker has a Bluetooth range of 40 meters, supports 12 hours of battery life on a single charge and comes with USB-C charging.

In the past year, Logitech has launched a number of music and innovative audio equipment that includes EVERBOOM portable speaker with 360° sound, EPICBOOM Bluetooth speaker, Logitech G ASTRO A50 X LIGHTSPEED wireless headset, Zone Wireless 2 headsets for work and software like Streamlabs plugin for Loupedeck users.

These innovative launches have been driving Logitech’s revenues from the Headset division. In the first quarter of fiscal 2025, sales from the segment improved 20% year over year to $44.2 million.

Logitech One-year Performance Chart

Image Source: Zacks Investment Research

Logitech Benefits From Its Innovative Portfolio

Alongside its audio portfolio, LOGI has also enriched its consumer electronic portfolio, including gaming products and office work accessories. Logitech has stormed the gaming market with LIGHTSPEED Gaming Mouse, Logitech G515 next generation gaming keyboard and PRO X 60 Gaming Keyboard.

So far this year, Logitech has contributed its AI-powered USB conference camera MeetUp 2 and other webcams, including MX Brio/MX Brio 705 for Business and Mevo Core 4K camera, in the webcam market. With all these innovations in place, LOGI is expected to serve a wide customer base. For the office electronic accessories market, LOGI launched the Casa Pop-Up Desk, Signature Slim K950, Slim Combo and Slim Combo for Business keyboards.

Furthermore, Logitech dedicated an entire lineup of products for Apple’s (AAPL Quick QuoteAAPL - Free Report) Mac under the brand Logi for Mac products. To gain market share among Apple users, Logitech has enhanced the compatibility of its product lineup with Mac OS and iPadOS. Logitech has launched dedicated macOS keyboards for the Apple ecosystem. LOGI’s portfolio for Mac users includes MX Anywhere 3S keyboards, MX Keys S, MX Keys S Combo, MX Keys Mini and Ergo Series Wave Keys.

In the past couple of years, LOGI has certified its peripherals to work seamlessly with Microsoft (MSFT Quick QuoteMSFT - Free Report) and Intel (INTC Quick QuoteINTC - Free Report) products. LOGI has certified its Sight AI Camera from Microsoft Teams. Logitech also verified its mouse and keyboard for Intel Evo laptops that meet strict requirements for reliability, interoperability and security.

Near-Term Headwinds for LOGI Stock

Logitech’s near-term prospects might be negatively impacted by softening IT spending. The weakening global economy amid ongoing macroeconomic uncertainties and geopolitical issues has been prompting enterprises to postpone their large IT spending plans.

Continued industry layoffs due to growing recessionary concerns are hampering the demand for PC peripheral products by organizations. Moreover, a lack of the need for product refreshes is expected to negatively impact the demand for Logitech’s products in the near term. Notably, the majority of the global working population refreshed PCs and related peripheral products about two years ago in the wake of the pandemic-led work-from-home trend.

Logitech also operates in a highly competitive market, which is characterized by short product life cycles, constant new product introductions, rapidly changing technology, evolving customer demands and aggressive promotional and pricing practices. This is also a major concern for LOGI.

Logitech expects fiscal 2025 sales in the band of $4.34-$4.43 billion. The Zacks Consensus Estimate for revenues is pegged at $4.39 billion, indicating year-over-year growth of 2.2%.

Conclusion: Hold LOGI Stock for Now

Logitech is on a recovery path from the post-pandemic downturn. Its growth is supported by a recovery in the personal computer market. Logitech’s sustained focus on grabbing a larger market share in the highly competitive PC peripheral equipment industry by pursuing innovation and expanding its product lines is commendable.

However, a sluggish IT spending environment might hurt its near-term prospects. Also, LOGI currently carries a Zacks Value Score of C, reflecting a stretched valuation at present. Considering these factors, it is prudent for investors to wait for a better entry time for this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.