Bull of the Day: Cirrus Logic (CRUS)

Core Viewpoint - Cirrus Logic (CRUS) is identified as a strong buy with a Zacks Rank of 1, despite having a C for Value and a D for Growth, indicating potential undervaluation in the context of a hot semiconductor sector [1] Company Overview - Cirrus Logic, Inc. specializes in mixed-signal processing solutions, with product lines including audio and High-Performance Mixed-Signal (HPMS) products. The company operates in various geographical segments including China, Hong Kong, Vietnam, South Korea, India, the United States, and the Rest of the World [2] Earnings Performance - Cirrus Logic has consistently exceeded the Zacks Consensus Estimate in the last four quarters, with the most recent EPS reported at $2.83, surpassing the estimate of $2.40 by $0.43, resulting in a 17.9% positive earnings surprise. The average positive surprise over the last four quarters is 31% [4] Earnings Estimates Revisions - Earnings estimates for Cirrus Logic have been revised upwards, with the full year 2025 estimate increasing from $7.07 to $7.73 and the 2026 estimate rising from $7.05 to $7.32 over the past 60 days [5] Valuation Metrics - The forward earnings multiple for Cirrus Logic is 15.5x, which is considered low, especially as the fiscal year revenue is projected to contract by 1.65%. However, the next fiscal year is expected to see a revenue growth of 1.2%. The price to book multiple is slightly over 3x, which may attract value investors [6] Operating Margins - Operating margins for Cirrus Logic have shown a positive trend, increasing from 17.9% to 18.5% and then to 19.8% over the last three quarters [7]