From Nasdaq: 2024-11-19 09:40:00

Cirrus Logic, Inc. (CRUS) stock has declined 19.3% in the past month, performing worse than its sub-industry and the Computer and Technology sector. Investor concerns stem from lower-than-expected guidance for the current quarter, projecting a revenue decline of 17.6% due to fewer production weeks. CRUS is heavily reliant on Apple for revenue, facing competition and increasing expenses affecting margins.

CRUS stock is currently trading below its 52-week high and faces bearish technical indicators. Despite challenges, Cirrus Logic shows potential in the laptop market and smartphone audio space. The company aims to expand into new markets and enhance its product mix for revenue growth. A strong balance sheet with cash reserves and share repurchases provide stability for investors.

However, CRUS trades at a discount compared to industry peers, presenting an opportunity for investors. While the company focuses on growth areas like smartphones and laptops, challenges in operating expenses and customer concentration remain. Analysts have revised earnings estimates downward, signaling caution. With a Zacks Rank #3 (Hold), CRUS may not be a prudent investment choice for now.



Read more at Nasdaq: Cirrus Logic Tanks 19% in a Month: Buy, Sell or Hold CRUS Stock?