Have you been paying attention to shares of Cirrus Logic (CRUS)? Shares have been on the move with the stock up 17.3% over the past month. The stock hit a new 52-week high of $144.76 in the previous session. Cirrus Logic has gained 20.5% since the start of the year compared to the -0.6% move for the Zacks Computer and Technology sector and the 3.2% return for the Zacks Electronics - Semiconductors industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 3, 2026, Cirrus Logic reported EPS of $2.97 versus consensus estimate of $2.42.
For the current fiscal year, Cirrus Logic is expected to post earnings of $8.51 per share on $1.94 in revenues. This represents a 12.86% change in EPS on a 2.35% change in revenues. For the next fiscal year, the company is expected to earn $8.77 per share on $2.03 in revenues. This represents a year-over-year change of 3.03% and 4.48%, respectively.
Valuation Metrics
Though Cirrus Logic has recently hit a 52-week high, what is next for Cirrus Logic? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Cirrus Logic has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 16.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 37.6X. On a trailing cash flow basis, the stock currently trades at 19.4X versus its peer group's average of 23.4X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Cirrus Logic currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cirrus Logic fits the bill. Thus, it seems as though Cirrus Logic shares could still be poised for more gains ahead.
How Does CRUS Stack Up to the Competition?
Shares of CRUS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Applied Materials, Inc. (AMAT). AMAT has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. Applied Materials, Inc. beat our consensus estimate by 2.84%, and for the current fiscal year, AMAT is expected to post earnings of $9.62 per share on revenue of $29.17 billion.
Shares of Applied Materials, Inc. have gained 7.1% over the past month, and currently trade at a forward P/E of 33.53X and a P/CF of 31.95X.
The Electronics - Semiconductors industry is in the top 25% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CRUS and AMAT, even beyond their own solid fundamental situation.
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Cirrus Logic, Inc. (CRUS): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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