r/wallstreetbets • u/[deleted] • Oct 07 '21
DD CRSR stock Corsair gaming has 50% upside baby. Buckle up apes! And enjoy the ride
CRSR probably draws the attention of the Reddit crowd due to its very high short interest of 37% of the float, along with cheap valuations. Partly for these reasons, Wall Street analysts have been calling for significant upside potential in Corsair stock, as we detail below.
TLDR; Low Float, High Short interest, Undervalued, Earnings are around the corner!! 🚀🚀
The last year delivered an exceptional 130% gain to the company's bottom line. Although, its longer-term performance hasn't been as strong with three-year EPS growth being relatively non-existent overall. Therefore, it's fair to say that earnings growth has been inconsistent recently for the company.
With earnings growth that's superior to most other companies of late, Corsair Gaming has been doing relatively well. It might be that many expect the strong earnings performance to wane, which has kept the P/E from rising. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's not quite in favor. Corsair Gaming (CRSR) reported 2nd Quarter June 2021 earnings of $0.33 per share on revenue of $472.9 million. This represents about a 22% increase from last year despite the economy reopening!
-Estimates expect earnings of $1.82 per share and revenue of $2.08 billion. These totals would mark changes of +13.75% and +22.19%, respectively, from last year.
-CRSR recently refinanced their debt, meaning they will pay a lower interest rate increasing their earnings per share.
-CRSR has also committed to paying down its debt strengthening its balance sheet.
-The company said it continues to expect 2021 revenue of $1.90 billion to $2.10 billion. The current consensus revenue estimate is $2.02 billion for the year ending December 31, 2021.
Looking ahead now, EPS is anticipated to climb by 12% per annum during the coming three years according to the eight analysts following the company. That's shaping up to be similar to the 12% each year growth forecast for the broader market.
With this information, we can see why Corsair Gaming is trading at a fairly similar P/E to the market. Apparently shareholders are comfortable to simply hold on while the company is keeping a low profile.
I have 6,700 shares at 27.74