Logitech Falls 13% in 6 Months: Should You Hold or Fold the Stock?

After years of limited advancements in chronic obstructive pulmonary disease (COPD) treatment, patients now have new options.

Regeneron Pharmaceuticals Inc and Sanofi SA’s Dupixent recently gained FDA approval for COPD, marking its sixth U.S. indication since its first use for atopic dermatitis seven years ago.

This expansion positions Dupixent as the first targeted therapy for COPD, a significant leap in treating this progressive lung condition that impedes breathing due to obstructed airflow.

COPD often manifests as chronic bronchitis and emphysema, typically developing from prolonged exposure to irritants like cigarette smoke, air pollution, or occupational dust.

Also Read: Regeneron’s Dupixent COPD Sales To Reach $20B By 2026, Analyst Sees Larger Addressable Market

The condition impacts millions globally, with a 2023 analysis by DelveInsight reporting around 44 million diagnosed cases across seven major markets, with projections of continued growth at a 1.4% CAGR through 2034.

COPD management typically involves medications like bronchodilators, which ease breathing by relaxing airway muscles.

These drugs, often used in inhalers, can include steroids to reduce inflammation in severe cases. Common options include short—and long-acting bronchodilators like Albuterol, Ipratropium, and Aclidinium. LABAs and LAMAs are also prevalent, with combinations such as LABA+ICS (e.g., AstraZeneca Plc’s Symbicort, GSK Plc’s Advair) and LABA+LAMA (e.g., GSK’s Anoro Ellipta, Boehringer Ingelheim’s Stiolto Respimat) available for comprehensive treatment.

The introduction of Dupixent changes the treatment landscape by specifically targeting type 2 inflammation pathways (IL-4 and IL-13), which play a role in COPD patients with elevated eosinophils prone to frequent exacerbations.

The Phase 3 BOREAS trial demonstrated that DUPIXENT reduced moderate-to-severe exacerbations by 30% over 52 weeks and improved lung function, with prebronchodilator FEV1 increasing by 160 mL compared to 77 mL in the placebo group.

The drug also had a favorable safety profile, indicating its potential as a game-changer for those with type 2 inflammation.

Further boosting the pipeline, mid-stage drugs like Sanofi/Regeneron’s itepekimab, AstraZeneca’s benralizumab, Amgen Inc NASDAQ: AMGN/AstraZeneca’s tezepelumab, and GSK’s mepolizumab are in development, promising more options to transform COPD management.

On Wednesday, Regeneron announced that new and updated data from its hematology pipeline will be presented in 23 abstracts at the American Society of Hematology 2024 Annual Meeting.

Price Action: REGN stock traded lower by 0.98% to $812.92 at the last check on Wednesday.

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Photo by Minerva Studio via Shutterstock

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What are the Zacks Style Scores?

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The Style Scores are broken down into four categories:

Value Score

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth Score

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Momentum Score

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VGM Score

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Logitech (LOGI)

Based in Switzerland, Logitech International S.A. is the parent holding company of Logitech. The company is a global leader in peripherals for personal computers and other digital platforms. It develops and markets innovative products in PC navigation, Internet communications, digital music, home-entertainment control, video security, interactive gaming and wireless devices.

LOGI is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.71; value investors should take notice.

For fiscal 2025, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.20 to $4.63 per share. LOGI boasts an average earnings surprise of 32.5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, LOGI should be on investors' short list.

Zacks Investment Research

Immersion Corporation IMMR is expected to report third-quarter 2024 results this week.

The Zacks Consensus Estimate for revenues is pegged at $10.13 million, suggesting a 6.9% year-over-year increase. The consensus mark for earnings stands at 15 cents per share, unchanged over the past 60 days, implying an impressive 87.5% surge from the year-ago figure of 8 cents.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

As a leading developer and licensor of touch feedback (haptic) technology, Immersion has shown a consistent performance in surpassing earnings expectations. The company’s earnings have topped the Zacks Consensus Estimate three times in the past four quarters, with an average surprise of 50.6%.

Immersion Corporation Price and EPS Surprise

Immersion Corporation price-eps-surprise | Immersion Corporation Quote

Factors Shaping IMMR’s Upcoming Results

Immersion’s third-quarter performance is likely to have benefited from the rising demand for its haptic technology across key sectors such as gaming, automotive and consumer electronics. The push for enhanced user experiences, propelled by new product launches and strategic partnerships, is likely to have bolstered sales of its patented solutions.

The increasing adoption of virtual reality (VR) and augmented reality (AR) technologies, which rely on haptic feedback for immersive experiences, may have driven demand for Immersion’s offerings. Revenue growth in the to-be-reported quarter is also expected to have been supported by expanded licensing agreements and royalty income from prominent OEMs (original equipment manufacturers) in these emerging tech markets.

Immersion’s strategic initiatives aimed at broadening its product range and entering new markets, coupled with efficient cost management, could have enhanced operational efficiency and improved profit margins. The company’s focus on expanding its intellectual property (IP) portfolio and securing new licensing deals is likely to have played a pivotal role in boosting revenue and earnings growth in the third quarter.

Immersion’s Price Performance & Valuation

Year to date (YTD), shares of Immersion have soared 22.4%, outperforming the Zacks Computer - Peripheral Equipment industry’s decline of 35.7%. The IMMR stock has also outperformed other players in the space, including Logitech LOGI, TransAct Technologies TACT and Identiv INVE, which have registered a decline of 18.7%, 42.1% and 54.2%, respectively, YTD.

YTD Price Return Performance

Let’s look at the value Immersion offers investors at the current levels. IMMR is trading at a premium with a forward 12-month P/S of 6.15X compared with the industry’s 0.53X, reflecting a stretched valuation.