goPro (GPRO) closed the last day of trading at $8.37, -0.48% from the previous trading session. This change lagged the S&P 500’s 0.51% gain on the day. Meanwhile, the Dow Jones gained 0.44% and the Nasdaq, a technology-heavy index, added 0.19%.
Prior to today’s trading, shares of the action video camera maker were down 0.71% in the past month. This was narrower than the Consumer Discretionary sector’s 1.01% loss and lagged the S&P 500’s 5.51% gain during this period.
Wall Street will be looking for positivity from GoPro as its next earnings report date nears. The company is expected to post EPS of $0.05, up 66.67% from the prior year quarter. Meanwhile, our latest consensus estimate calls for revenue of $216.87 million, up 6.47% from the prior year quarter.
Looking to the full year, our Zacks consensus estimates suggest analysts expect earnings of $0.96 per share and revenue of $1.26 billion. These totals would mark changes of +6.67% and +8.53%, respectively, from last year.
It’s also important to note recent changes to analyst estimates for GoPro. These recent revisions tend to reflect the evolving nature of short-term trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.
Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 Over the past month, the Zacks Consensus EPS estimate rose 0.89%. GoPro is currently a Zacks Rank #3 (Hold).
In terms of valuation, GoPro is currently trading at a forward P/E ratio of 8.78. Its industry has an average P/E Forward of 12.09, so we can conclude that GoPro is trading at a discount comparatively.
The audio video production industry is part of the consumer discretionary sector. This group has a Zacks Industry ranking of 190, which places it in the bottom 26% of all 250+ industries.
The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.