Yahoo Finance Buy Logitech (LOGI) Stock to Enhance Your Portfolio Returns
Logitech International S.A. LOGI is one stock investors should consider adding to their portfolio to benefit from its upside potential.
Shares of this leading provider of computer peripherals and software have risen 3.9% year to date (YTD) and outperformed the Zacks Computer – Peripheral Equipment industry, which declined 23.6% during the same time frame.
This outperformance comes amid broader market volatility and reflects the company’s back-to-back quarters of impressive financial performance, improving industry trends and strong fundamentals.
Logitech’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 49.3%. Earnings estimates for the current fiscal year have increased, implying robust inherent growth potential. The consensus mark for fiscal 2025 earnings has been revised 23 cents upward over the past 60 days to $4.28 per share. Additionally, it has a long-term earnings growth expectation of 8.4%.
Considering healthy fundamentals, along with an impressive earnings growth potential, the stock appears to be a solid investment option at the moment.
Logitech International S.A. Price and Consensus
Logitech International S.A. price-consensus-chart | Logitech International S.A. Quote
Recovering From Post-Pandemic Woes
Back-to-back quarters of impressive financial results have reaffirmed investors’ confidence in Logitech's recovery post-pandemic. The rising trend of hybrid work is expected to drive demand for Logitech’s video collaboration tools, keyboards and pointing devices. Additionally, the increasing adoption of cloud-based video conferencing services remains a crucial growth driver.
Logitech is benefiting from the growing demand for peripherals and accessories in both mature and emerging markets, leveraging its software and go-to-market strategies to capture market share. The company continues to innovate and expand its product lines to tap into the high-potential accessories market.
Last year’s Loupedeck acquisition further strengthened Logitech's portfolio by enhancing its capability to provide customizable control experiences. Loupedeck's integration with industry-leading creative software and its innovative consoles have enabled Logitech to offer advanced solutions to creators, streamers and gamers.
Additionally, recovery in PC sales will provide further growth momentum to Logitech as PCs are the main sales booster for computer peripheral products. According to the latest data released by International Data Corporation, the worldwide traditional PC market returned to growth in the first quarter of 2024 following two years of a decline. The research firm also projects that global PC shipments will increase 2% in 2024, which bodes well for Logitech’s growth prospects.
Partnerships Aid Growth
Logitech's partnerships with industry giants like Microsoft’s MSFT Teams, Alphabet’s GOOGL Google and Zoom Video Communications ZM play a pivotal role in driving its growth and expanding its market reach. Partnerships allow Logitech to tap into the vast user bases of these companies. By ensuring that its hardware integrates seamlessly with these widely used platforms, Logitech positions itself as a preferred choice for companies looking to enhance their virtual communication infrastructure.
The collaboration with Microsoft Teams’ product has enabled Logitech to provide certified peripherals that enhance productivity and communication in hybrid work environments. Its partnership with Alphabet’s Google has led to the development of devices that are compatible with Google Meet. The partnership with Zoom ensures seamless compatibility and superior user experiences, making Logitech's offerings highly attractive for businesses adopting Zoom for remote work and virtual meetings.
Final Thoughts
Logitech’s improving financial performance, innovative product lineup and strategic partnerships make it a compelling investment option. Its ability to adapt to changing market dynamics and capitalize on emerging opportunities ensures that it remains a leader in the tech peripherals space.
Additionally, the stock has a favorable combination of a Zacks Rank #1 (Strong Buy) and a Growth Score of B. 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 or #2 (Buy) and a Growth Score of A or B offer solid investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Therefore, considering its impressive growth profile and attractive Zacks Style Score, we believe it is the right time to invest in the stock.
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