While the tech industry performed exceptionally over the past year, the mega-cap tech giants reaped the majority of benefits. However, the unprecedented gains of industry leaders such as Amazon.com, Inc. (AMZN – Get Rating) and Facebook, Inc. (FB – Get Rating) has led to overvaluations and caught the attention of regulators across the world. It will likely lead to multiple antitrust and monopolistic practices allegations against these companies. Therefore, some lesser-known tech companies have better prospects in 2021…
While many expect the tech industry to underperform in a post-pandemic economy, they will continue to play an essential role in our lives and remain crucial to business operations. Of course, we still have to deal with the pandemic which necessitates a reliance on these companies.
Companies such as Cirrus Logic, Inc. (CRUS – Get Rating) and Vishay Intertechnology, Inc. (VSH – Get Rating) share the same positive attributes as many of the 2020 winners. However, they have less risk in terms of valuation and regulations.
Cirrus Logic, Inc. (CRUS – Get Rating)
CRUS manufactures fabless semiconductors using mixed-signal integrated circuits and analog to digital converters. The company’s product pipeline can be categorized into three segments – Portable Audio, Non-Portable Audio, and Other. It has an Institutional Shareholder Service (ISS) Governance Quality Score of 1, indicating a relatively low governance risk.
CRUS’ revenue has declined 10.7% year-over-year to $347.33 million in the fiscal second quarter ended September 26, 2020. Net income has fallen 21.9% from the same period last year to $59.49 million, while EPS declined 22% from the year-ago value to $0.99.
While the poor financial performance in the last reported quarter can be attributed to the global economic slump, the company has been taking active efforts to boost its business this year, thereby preparing it to become more competitive in a post-pandemic world. To this end, CRUS undertook several changes at the executive and director level. The company unanimously elected John Forsyth as the new CEO this year, who has over 20 years of experience in this domain.
The consensus EPS estimate of $4.33 for the fiscal year 2021 indicates an 8.5% improvement year-over-year. The company has an impressive earnings surprise history as well, as it beat the Street EPS estimates in each of the trailing four quarters. The consensus revenue estimate of…
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