Logitech Stock Plunges 13% YTD: What Should Investors Do?

Logitech LOGI shares have plunged 13% year to date, underperforming the Zacks Computer Technology sector and the S&P 500’s return of 33.4% and 26.3%, respectively. As an established player in the computer-peripheral space, LOGI’s underperformance is disappointing. This raises an important question for investors: Is it the right time to buy or sell the stockLOGI Grapples With Competitive and Economic HeadwindsLogitech has been facing multiple challenges from the weakening global economy amid ongoing macroeconomic uncertainties to the geopolitical issues in the heart of Europe. The weakened global economy has affected consumer spending, lowering the consumption of consumer electronics, affecting Logitech’s revenues throughout fiscal 2024.Logitech operates in a highly competitive market with big players like Bose, Sony Group SONY, Apple AAPL, Corsair CRSR, Microsoft, Philips, HP, Dell, Cisco and many more. The peripheral market in which Logitech operates is also characterized by short product life cycles forcing Logitech to continuously invest in new product capabilities, giving rise to its operating expenses. Additionally, LOGI’s marketing and selling costs have been on a rising trend for the past eight quarters.The pointing device market where Logitech is a leader, also has other strong players like HP and Dell. On the other hand, Sony, Bose and Corsair have their impressive lineup of headsets and Cisco competes with Logitech in the webcam market. These brands constantly pose a direct threat to Logitech with their launch of new products, pricing pressure and promotional campaigns. These factors also force Logitech to take in aggressive marketing tactics.Moreover, the peripheral market also faces indirect competition from the growing popularity of smaller and mobile computing devices with touch interfaces, which is diminishing the demand for desktop PCs. As Logitech mainly serves the PC-oriented peripheral product market, the rise in popularity of touch interface-based products is posing a headwind to its product lines.Logitech Price Performance ChartImage Source: Zacks Investment ResearchStrong Portfolio Aids LOGI’s RecoveryDespite headwinds, Logitech's revenues are recovering as it navigates challenges with innovative product launches. Throughout 2024, Logitech has launched several innovative audio equipment, webcams, headsets, pointing devices, keyboards and other consumer electronic devices.Logitech’s audio equipment product launches include the EVERBOOM portable speaker with 360° sound, EPICBOOM Bluetooth speaker, Logitech G ASTRO A50 X LIGHTSPEED wireless headset, Zone Wireless 2 headsets for work and software like Streamline plugin for Loupedeck users.Alongside its audio portfolio, LOGI has also enriched its consumer electronic portfolio, including gaming products and office work accessories. Logitech has stormed the gaming market with LIGHTSPEED Gaming Mouse, Logitech G515 next-generation gaming keyboard and PRO X 60 Gaming Keyboard.So far this year, Logitech contributed to the webcam market with its AI-powered USB conference camera, MeetUp 2. Other webcams include MX Brio/MX Brio 705 for Business and Mevo Core 4K camera. With all these innovations in place, LOGI is expected to serve a wide customer base.For the office electronic accessories market, LOGI launched the Casa Pop-Up Desk, Signature Slim K950, Slim Combo and Slim Combo for Business keyboards. Furthermore, Logitech dedicated an entire lineup of products for Apple’s Mac under the brand Logi for Mac products.With all these innovative products in place, Logitech expects fiscal 2025 sales in the band of $4.39-$4.47 billion. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $4.43 billion, indicating year-over-year growth of 3.11%.The Zacks Consensus Estimate for LOGI’s fiscal 2025 earnings is pegged at $4.63, suggesting year-over-year growth of 9%.Conclusion: Hold LOGI for NowAlthough Logitech faces stiff competition and macroeconomic challenges, the company is on the path of recovery on the back of its innovative products. Considering all these factors, investors should retain this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Logitech International S.A. (LOGI): Free Stock Analysis Report Corsair Gaming, Inc. (CRSR): Free Stock Analysis Report Sony Corporation (SONY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks