Corsair Gaming Inc
Corsair Gaming Inc
- Initial public offering held Sept. 23; stock was priced at 17 a share
- Stock closed at 22.97, above buy point of 22.60; hit 23.40 intraday
- Relative Strength rating at 93 out of 99; RS line near record highs
Industry Group Ranking
Can be as short as seven market days but usually several weeks, the IPO base is the first consolidation for a newly public company. IPO bases tend to be volatile.
12:28PM EDT on
Corsair Gaming (CRSR) is the IBD Stock Of The Day as the maker of premium video game hardware and peripherals benefits from the growth of esports and the home entertainment boom spurred by the Covid-19 pandemic. Corsair stock hit a buy point on Tuesday.
In morning trading on the stock market today, Corsair stock broke out of an IPO base at a buy point of 22.60, according to IBD MarketSmith charts. It climbed to an all-time high of 23.40 before pulling back. Corsair stock jumped 14.5% to close at 22.97.
On Monday, at least seven Wall Street analysts initiated coverage of Corsair stock with buy ratings. The Fremont, Calif.-based company held its initial public offering on Sept. 23 with shares priced at $17.
“Corsair has a solid niche in what otherwise appears to be a commodity business,” Wedbush Securities analyst Michael Pachter said in a note to clients. “Unlike many of its larger competitors, Corsair is firmly focused on the gaming segment, with the vast majority of its sales coming from a small, but dedicated base of hard-core gamers.”
Livestreaming A Big Opportunity For Corsair Gaming
Pachter rates Corsair stock as outperform with a price target of 25.
Livestreaming is another big opportunity for Corsair, Pachter said. Corsair sells devices for players to livestream their gaming sessions for others to watch on Amazon‘s (AMZN) Twitch and Alphabet‘s (GOOGL) YouTube.
Corsair makes high-end gaming peripherals such as headsets, keyboards, mice and controllers. It also sells PC components such as memory, cooling systems and power supplies as well as full gaming PC systems.
Corsair Stock Ranks Second In Its Industry Group
Like other video game companies, Corsair has benefited from increased usage during the stay-at-home entertainment trend fueled by the coronavirus pandemic.
Corsair stock ranks second out of 14 stocks in IBD’s Computer-Hardware and Peripherals industry group, according to the IBD Stock Checkup tool. Logitech is the top-ranked stock in the group.
Corsair stock has an IBD Composite Rating of 95 out of 99. The Composite Rating is an easy way to identify top growth stocks. It’s a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
The computer hardware and peripherals industry group ranks No. 46 out of 197 industry groups tracked by IBD. Choosing highly rated stocks from leading industry groups in a confirmed stock market uptrend generally increases your chances of making profits in growth stocks.
In a bullish sign, the relative strength line of Corsair stock is in record high territory as it outperforms the benchmark S&P 500 index. Corsair stock has an IBD Relative Strength Rating of 93, meaning it has outperformed 93% of stocks over the past 12 months.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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