Why Investors Need to Keep Logitech Stock on Their Radar

Logitech International S.A. (NASDAQ:LOGI) is a Swiss manufacturer of computer auxiliary parts and software. The company has offices throughout Europe, Asia, Australia, and the Americas. Logitech develops and markets parts for PC navigation, video communication and collaboration, music, gaming, and smart homes. This includes products like keyboards, mice, tablet accessories, webcams, Bluetooth speakers, universal remotes and more. Brands under the Logitech umbrella include Logitech, Logitech G, ASTRO Gaming, Streamlabs, Blue Microphones, Ultimate Ears and Jaybird.

On June 30, Logitech announced that the company’s 2021 annual general meeting will take place on Sept. 8, and that Didier Hirsch will leave the board when his term ends in the fall, due to the company’s board term limits. His role will be taken up by Deborah Thomas as the chair of Audit Committee. This afternoon, LOGI was last seen up 2.6% at $123.48.

Logitech stock has increased by a whopping 86% year-over-year and have grown by 22% year-to-date. However, the shares remain 11% below the early June record peak of $140.17. Logitech stock also has a forward dividend of $0.87 and a dividend yield of 0.72%.

Logitech has done well when stepping up to the earnings plate over the past year, outperforming expectations on all four of its most recent quarterly earnings reports released. For Q2 of 2020, LOGI  beat analyst estimates by a margin of $0.30 and reported an earnings per share (EPS) of $0.64. For Q3 of 2020, Logitech's EPS increased to $1.87 and beat expectations by a margin of $1.30. For Q4 of 2020, LOGI rose to $2.45 per share, outperforming estimates by a margin of $1.43. For the company's first quarter of 2021, Logitech reported an EPS of $1.45 and beat expectations by a margin of $0.62. 

LOGI trades at a price-earnings ratio of 21.83, which is fairly standard in today’s market. However, an argument could be made that Logitech stock is undervalued given the company’s already large market cap of $20 billion and the ever-growing profit potential in the technology industry. Unfortunately, Logitech stock also has a forward price-earnings ratio of 28.25, which isn’t as attractive as its current value.

Logitech has experienced significant growth over the past year, with revenues increasing by 80%. LOGI also has an excellent balance sheet with $1.75 billion in cash and only $34.42 million in debt. Overall, Logitech stock will likely be a decent growth stock over the next few years, at least.

Lastly, LOGI options can be had for a a bargain at the moment. The equity's Schaeffer's Volatility Index (SVI) of 26% stands at the bottom of readings from the past year. In simpler terms, options players are currently pricing in low volatility expectations.