Corsair Gaming Inc
Corsair Gaming Inc
$8.46 16.5% 209%
IBD Stock Analysis
- Stock fell by double digits Wednesday, signaling it’s time to take profits
- Shares pulling back, but the stock is not currently in a buyable pullback
- Short-term traders should consider selling a third to half their position
Industry Group Ranking
* Not real-time data. All data shown was captured at 1:03PM EST on 11/25/2020.
Corsair Gaming (CRSR) is the IBD Stock Of The Day as the red-hot initial public offering is flashing sell signals. Corsair stock fell Wednesday after soaring to its seventh record high in as many trading days on Tuesday.
On the stock market today, Corsair stock plunged 16.5% to close at 42.80. On Tuesday, it notched an all-time high of 51.37. Corsair stock ended the regular session Tuesday up 13.1% to 51.26.
According to IBD trading principles, investors should be locking in some profits after the stock’s steep climb. Traders should consider selling a third to half of their position in Corsair stock. Shares are in pullback mode, but it isn’t a buyable pullback.
Corsair stock closed Tuesday 43% above its 10-day moving average line. When stocks get that extended, it is time to take some profits. Short-term traders might want to get out altogether.
Palantir Technologies (PLTR), another streaking stock, was more than 50% above its 10-day average Wednesday afternoon and also at risk of sliding back. This is another stock where it makes sense to take at least some profits. Palantir has shot up more than 150% from its Nov. 5 breakout.
If Corsair ends Wednesday below Tuesday’s low of 46.15, that would be another sell signal.
Corsair Stock Riding High On Esports, Livestreaming
Fremont, Calif.-based 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. Plus, it sells livestreaming gear for content creators.
Corsair went vertical after the company delivered a beat-and-raise earnings report on Nov. 10.
The company is benefiting from the growth of esports and livestreaming as well as the popularity of video games during the stay-at-home entertainment boom spurred by the Covid-19 pandemic.
Tied For First Place In Computer Hardware Group
According to the IBD Stock Checkup tool, Corsair stock has a best-possible IBD Composite Rating of 99. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
Corsair stock also has a top-notch IBD Relative Strength Rating of 99. That means it is in the top 1% of stocks for performance over the past 12 months.
Corsair stock is tied for first place in IBD’s Computer Hardware and Peripherals industry group with Logitech International (LOGI). Logitech also has a perfect 99 Composite Rating.
The computer hardware group that includes Corsair stock ranks No. 33 out of 197 industry groups that IBD tracks. Choosing highly rated stocks from leading industry groups in a confirmed stock market uptrend generally increases your chances of making profits in growth stocks. Corsair proved that point, but now appears to be topping.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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