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Cirrus Logic (CRUS) Outpaces Stock Market Gains: What You Should Know

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Cirrus Logic (CRUS - Free Report) closed the most recent trading day at $85.34, moving +1.25% from the previous trading session. This change outpaced the S&P 500's 0.67% gain on the day. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq added 0.81%.

Heading into today, shares of the chipmaker had gained 11.07% over the past month, outpacing the Computer and Technology sector's gain of 6.02% and the S&P 500's gain of 3.55% in that time.

CRUS will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2020. In that report, analysts expect CRUS to post earnings of $1.12 per share. This would mark year-over-year growth of 23.08%. Meanwhile, our latest consensus estimate is calling for revenue of $345.60 million, up 6.57% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.39 per share and revenue of $1.21 billion. These totals would mark changes of +28.41% and +2.3%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for CRUS. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CRUS is currently a Zacks Rank #2 (Buy).

In terms of valuation, CRUS is currently trading at a Forward P/E ratio of 24.85. This represents a premium compared to its industry's average Forward P/E of 24.34.

We can also see that CRUS currently has a PEG ratio of 1.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CRUS's industry had an average PEG ratio of 2.13 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 61, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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