Back to top

Image: Bigstock

GoPro (GPRO) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, GoPro (GPRO - Free Report) closed at $8.62, marking a +1.89% move from the previous day. This change lagged the S&P 500's 2.48% gain on the day. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq lost 0.09%.

Coming into today, shares of the action video camera maker had lost 2.2% in the past month. In that same time, the Consumer Discretionary sector lost 12.59%, while the S&P 500 lost 7.81%.

Wall Street will be looking for positivity from GoPro as it approaches its next earnings report date. This is expected to be May 5, 2022. On that day, GoPro is projected to report earnings of $0.05 per share, which would represent year-over-year growth of 66.67%. Our most recent consensus estimate is calling for quarterly revenue of $216.75 million, up 6.42% from the year-ago period.

GPRO's full-year Zacks Consensus Estimates are calling for earnings of $0.96 per share and revenue of $1.26 billion. These results would represent year-over-year changes of +6.67% and +8.53%, respectively.

Investors should also note any recent changes to analyst estimates for GoPro. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. GoPro is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note GoPro's current valuation metrics, including its Forward P/E ratio of 8.83. This valuation marks a discount compared to its industry's average Forward P/E of 10.96.

The Audio Video Production industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


GoPro, Inc. (GPRO) - free report >>

Published in