Company Performance - Cirrus Logic (CRUS) shares increased by 16.5% to close at $90.23, following a notable trading volume, contrasting with a 23.9% loss over the past four weeks [1] - The rise in share price is linked to President Trump's announcement of a 90-day suspension on reciprocal tariffs, excluding China, which positively impacted market indices and lifted many stocks, including Cirrus Logic [2] - Company-specific factors such as growing momentum in the laptop market and increased design wins with customers for next-generation flagship smartphones are contributing to the stock's performance [3] Product Demand and Partnerships - Strong demand for Cirrus Logic's latest custom-boosted amplifier and 22nm smart codec is driving growth [4] - Partnerships with Intel and other top OEMs are enhancing the company's presence in the laptop market [4] - The ongoing share buyback program reflects the company's confidence and commitment to shareholder value [4] Earnings Expectations - Cirrus Logic is expected to report quarterly earnings of $1.15 per share, representing a year-over-year decline of 7.3%, with revenues projected at $379.99 million, up 2.2% from the previous year [5] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [6] Industry Context - Cirrus Logic is part of the Zacks Electronics - Semiconductors industry, where another company, Allegro MicroSystems, Inc. (ALGM), saw a 22.7% increase in its stock price, although it has returned -25.7% over the past month [6] - Allegro MicroSystems has an unchanged EPS estimate of $0.05 for its upcoming report, reflecting an 80% decline from the previous year, and currently holds a Zacks Rank of 3 (Hold) [7]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [4] - The Momentum Score identifies stocks with upward or downward trends based on recent price changes and earnings estimate revisions [5] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize investment success, it is recommended to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower Zacks Ranks, even with high Style Scores, may still face downward price trends due to negative earnings outlooks [10] Company Spotlight: Cirrus Logic - Cirrus Logic, a fabless semiconductor supplier based in Austin, TX, holds a Zacks Rank of 2 (Buy) and a VGM Score of A, making it a notable investment opportunity [11] - The company has a Momentum Style Score of B, with shares increasing by 3.1% over the past four weeks [11] - For fiscal 2025, Cirrus Logic's earnings estimate has been revised upwards by three analysts, with the Zacks Consensus Estimate rising by $0.61 to $7.02 per share, and an average earnings surprise of 50.1% [12]

Group 1 - Cirrus Logic (CRUS) has returned 10.3% year-to-date, outperforming the Computer and Technology sector, which has lost about 0.9% on average [4] - The Zacks Rank for Cirrus Logic is currently 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past three months, the consensus estimate for Cirrus Logic's full-year earnings has increased by 8.1%, reflecting improved analyst sentiment [3] Group 2 - Cirrus Logic is part of the Electronics - Semiconductors industry, which consists of 44 companies and currently ranks 131 in the Zacks Industry Rank [5] - The average performance of the Electronics - Semiconductors industry has been a loss of 2.6% year-to-date, indicating that Cirrus Logic is performing better than its peers [5] - Affirm Holdings (AFRM), another stock in the Computer and Technology sector, has returned 6% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][6]

Core Viewpoint - Cirrus Logic (CRUS) shares have increased by 6.5% over the past four weeks, closing at $107.48, with analysts suggesting a potential upside based on price targets [1] Price Performance - The stock has shown a 6.5% gain in the last four weeks [1] - The closing price for the last trading session was $107.48 [1] Analyst Price Targets - The mean price target from Wall Street analysts is $135.83, indicating a potential upside of 26.4% from the current price [1]

Group 1 - The article emphasizes a long-term investment perspective on Cirrus Logic, Inc. (NASDAQ: CRUS), highlighting the company's future potential and direction [1] - The author has extensive experience in investing, having navigated multiple market crashes over the decades, which informs their analysis of CRUS [1] - The article reflects a commitment to both buy-and-hold strategies and trading systems, indicating a balanced approach to investment [1] Group 2 - The author holds a beneficial long position in CRUS shares, indicating confidence in the company's performance [2] - The article is presented as an independent opinion, with no external compensation influencing the analysis [2] - There is no business relationship with any company mentioned, ensuring the analysis is unbiased [2]

Core Viewpoint - Cirrus Logic reported better-than-expected fiscal Q3 2025 results, driven by strong demand for its semiconductors used in smartphones and laptops, exceeding its revenue guidance range [1][2]. Financial Performance - Cirrus Logic achieved quarterly revenue of $556 million, surpassing its guidance of $480 million to $540 million, despite a 10% decline from the previous year [2]. - Analysts project earnings growth of 7% for the current fiscal year, with expectations of double-digit growth in fiscal 2027 [9][10]. Customer Dependency - Apple accounted for 91% of Cirrus' revenue in the latest quarter, raising concerns about reliance on a single customer [4]. - Despite this dependency, Cirrus management maintains a strong relationship with Apple, indicating ongoing design activity across various products [4]. Market Trends - Sales of Apple's iPads and MacBooks have increased by 15% year-over-year, attributed to the introduction of AI features [4]. - A potential recovery in iPhone sales is anticipated, with Apple expected to ship at least 240 million iPhones in 2025, up from 232 million in 2024 [5][7]. Product Diversification - Cirrus is diversifying its market presence, with audio solutions now being featured in laptops and supplying components for a flagship smartphone from a leading Android OEM [8]. Valuation and Growth Potential - Cirrus is currently trading at 19 times earnings, presenting an attractive investment opportunity with a potential 29% price increase based on a 12-month median price target of $135 [11].

Market Overview - The stock market has shown resilience despite a volatile start to 2025, with key indicators such as the January CPI and Nvidia's earnings expected to influence future movements [1] - Bullish fundamentals for the stock market are anticipated to remain intact in the near future [1] Investment Strategy - Investors are advised to be cautious about purchasing stocks that may be overpriced as the market approaches all-time highs [2] - There are numerous value stocks available for investment, particularly those with strong earnings outlooks [2] Screening Methodology - The screening process utilizes the Research Wizard to identify top value stocks, focusing on Zacks Rank 1 (Strong Buys) or 2 (Buys) [3] - The screen prioritizes stocks with price-to-earnings (P/E) ratios and price-to-sales (P/S) ratios below the industry median [4][7] - It also considers quarterly earnings rates above the industry median and incorporates upgrades and estimate revisions to select the best stocks [4] Featured Stock: Cirrus Logic, Inc. (CRUS) - Cirrus Logic is highlighted as a strong value stock, specializing in low-power, high-precision mixed-signal processing solutions [5] - The company aims to maintain its leadership in smartphone audio and increase its high-performance mixed-signal content in smartphones [6] - Cirrus Logic has exceeded earnings estimates by an average of 50% over the past four quarters, with a notable 24% beat in Q3 FY25 [8] - The stock has appreciated nearly 1,400% over the last 15 years, significantly outperforming the Tech sector's 640% growth [8] - Despite recent underperformance, the stock is currently trading at a 50% discount to its 10-year highs and a 30% discount compared to the Tech sector [10]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, focusing on undervalued stocks [3] Growth Score - The Growth Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings outlook changes, helping investors identify optimal buying opportunities for high-momentum stocks [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, serving as a comprehensive indicator for selecting stocks with the best overall potential [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] Stock Example: Cirrus Logic (CRUS) - Cirrus Logic, a fabless semiconductor supplier, holds a 2 (Buy) rating on the Zacks Rank and has a VGM Score of A, making it attractive for momentum investors [12] - The stock has seen a 4.5% increase over the past four weeks, with two analysts raising earnings estimates for fiscal 2025, leading to a Zacks Consensus Estimate of $6.83 per share [12][13] - Cirrus Logic has an average earnings surprise of 50.1%, indicating strong performance potential [13]

Group 1: Stock Performance and Price Targets - Cirrus Logic (CRUS) closed at $106.77, with a 5.6% gain over the past four weeks, and a mean price target of $138 indicates a 29.3% upside potential [1] - The average of five short-term price targets ranges from a low of $115 to a high of $165, with a standard deviation of $18.23, suggesting a potential increase of 7.7% to 54.5% from the current price [2] - A tight clustering of price targets, indicated by a low standard deviation, suggests a high degree of agreement among analysts regarding the stock's price movement [7] Group 2: Earnings Estimates and Analyst Consensus - Analysts have shown increasing optimism about CRUS's earnings prospects, with strong agreement in revising EPS estimates higher, which correlates with potential stock price increases [9] - The Zacks Consensus Estimate for the current year has increased by 8.1%, with two estimates moving higher and no negative revisions in the last 30 days [10] - CRUS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential upside [11] Group 3: Analyst Behavior and Price Target Reliability - Analysts often set overly optimistic price targets due to business incentives, which can lead to inflated estimates [6] - Empirical research indicates that price targets set by analysts rarely indicate the actual direction of a stock's price, suggesting that investors should approach them with skepticism [5][8] - While consensus price targets may not be reliable for predicting gains, they can provide a directional guide for further research [12]

Have you looked into how Cirrus Logic (CRUS) performed internationally during the quarter ending December 2024? Considering the widespread global presence of this chipmaker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, ...