GoPro (GPRO - Free Report) closed the most recent trading day at $5.77, moving -1.87% from the previous trading session. This change lagged the S&P 500's 0.16% loss on the day. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.52%.
Coming into today, shares of the action video camera maker had lost 18.79% in the past month. In that same time, the Consumer Discretionary sector gained 2.34%, while the S&P 500 gained 3.12%.
Investors will be hoping for strength from GPRO as it approaches its next earnings release. The company is expected to report EPS of $0.04, up 126.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $301.28 million, up 6.58% from the year-ago period.
GPRO's full-year Zacks Consensus Estimates are calling for earnings of $0.38 per share and revenue of $1.26 billion. These results would represent year-over-year changes of +265.22% and +9.77%, respectively.
Investors should also note any recent changes to analyst estimates for GPRO. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. GPRO is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, GPRO is currently trading at a Forward P/E ratio of 15.47. For comparison, its industry has an average Forward P/E of 14.32, which means GPRO is trading at a premium to the group.
Investors should also note that GPRO has a PEG ratio of 1.55 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Audio Video Production was holding an average PEG ratio of 1.71 at yesterday's closing price.
The Audio Video Production industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% 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.