Corsair Gaming (CRSR) is back in the news again with a huge day yesterday.
The stock was up 12% yesterday as sell side analysts raise expectations for the company; alongside WallStreetBets putting a target on the back of its next favorite meme stock.
Corsair stock opened 26% higher on the FOMO craze, while closing up about 12% on the day.
As a result of a surge in stock price, short interest has climbed to a level of 18% of the float and has intrigued investors into placing bets that the stock will soon move in the opposite direction.
For comparison, the meme stock staples of Gamestop (GME) and AMC Holdings Entertainment (AMC) have current short interest levels of 21% and 23%, respectively.
The stock is currently up roughly 1% year-to-date (YTD), so still offers a lot of potential given recent revenue and profit growth.
Aside from the WallStreetBets Reddit channel making noise, any investor following Grizzle would have been all over this stock back in April.
Our fundamental newsletter Stock Safari highlighted Corsair as a stock well set up to benefit from strong growth in the E-Sports and Gaming industry.
Back in mid-April, Grizzle’s free newsletter Stock Safari wrote about the structure of the emerging E-Sports industry and we highlighted Corsair as a company that screened well based on the recent stock performance and other indicators we track.
The same newsletter also highlighted Sea Ltd. an Asian gaming juggernaut that is also up since the release of our report.
The 15% annual growth rate of the E-Sports industry is the main driver behind our positive view on Corsair, while Sea benefits from both gaming and e-commerce.
What is Stock Safari?
Stock Safari looks at the industries that will be the future drivers of economic growth.
We help you understand why these industries are so attractive and how to figure out which companies are set up best to ride these industry tailwinds.
For instance, we noted depressed earnings multiples in light of COVID-19 acting as a major catalyst for the E-Sports industry as a whole.
With industry growth estimates much higher than individual company estimates; coupled with a healthy balance sheet, it comes as little surprise that the average sell-side target price on Corsair sits at $47.00, 32% higher than today.
Some other noteworthy industries we have covered recently are Media Streaming, Crypto, Software as a Service (SaaS) and online gambling.
We highly recommend you check out Stock Safari and harvest the free weekly insights to make sure you don’t miss the next industry of the future.
The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Grizzle hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.