Buy Gopro Stock
Shares of GoPro (GPRO 1.73%) have been battered badly on the stock market this year amid the broader sell-off, but the action camera specialist has been showing signs of life of late.
buy gopro stock
GoPro has surged 20% in the last month on the back of a broader recovery in technology stocks. The stock has headed north despite the company's mixed second-quarter results that were released on Aug. 4. While GoPro's top and bottom lines exceeded expectations, the company's outlook turned out to be much worse than expected and points toward a slowdown in sales.
In all, it doesn't look like GoPro will be able to sustain its newly found momentum on the stock market given the headwinds discussed above. But if the stock heads lower, savvy investors may want to buy GoPro, as the company is setting itself for long-term growth.
GoPro (GPRO 1.73%) has long struggled to make its business into one that attracts a diverse group of users across multiple markets, and it has had to find ways to stand out and compete. Its stock struggled right along with it, amid market conditions limiting it as well. With high-resolution cameras available on many smartphones, GoPro has had to somewhat settle for being a niche company supported by sports and thrill-seeking enthusiasts.
GoPro has used this niche market to grow revenue over time directly and indirectly from its core business. And that is helping its stock. There are at least three reasons to think this tech stock can continue to find success down this path. There is also at least one key challenge it faces that potential investors need to factor in.
A perception of being an app without an ecosystem has long hurt GoPro stock. With sophisticated cameras built into smartphones and manufacturers continuing to make improvements, GoPro's cameras held little appeal.
Amid worries about competition, investors have wiped out most of this company's stock price value. Since peaking above $98 per share in late 2014, GoPro stock steadily dropped, reaching the single digits by late 2016. Today, it trades in the $7 per-share range.
Investors also remember that the fear of competition has contributed to its stock selling at more than a 90% discount to its all-time high. Both the stock price and the company depend on making GoPro and its ecosystem valuable to its users.
Nonetheless, a low P/E ratio and the growth of its subscription business could justify a speculative position for more risk-tolerant investors. As long as it continues to dominate its niche, it increasingly looks like a growth stock that could soar.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Garmin. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
Along the way, the company has had challenges with inventory, pricing, and of course the ever-improving cameras sitting in our pockets every day in smartphones. But GoPro seems to have found a niche it can win in and keeps incrementally improving its product, as we see with the HERO10 Black camera announced this week. But does that make it a decent stock to own for the long term?
As great as this business transformation has been, it has limitations. If GoPro can't increase sales volume and revenue, it'll have limits on how much money it can make. And with shares trading at 29 times trailing earnings, this isn't exactly a value stock today if the company is shrinking.
Speculating on new products may seem frivolous, but in GoPro's case, investors need to see a path toward growth to be bullish on the stock. And with so many failures in the past, GoPro needs something new to excite customers, or eventually its cameras will be made obsolete by more versatile devices, like smartphones.
The reality today is that GoPro is not a long-term growth stock, and it's hard to make the argument that it's a value for investors, even if it's now profitable. I like the move to more recurring subscription revenue and a general shift toward higher-margin power users, rather than a focus on volume growth, but there are limits to a business serving a niche market.
Until GoPro shows the ability to grow its product line and consistently increase revenue, this is a stock I'll stay out of. There are signs of hope for the company, but not enough to make me bullish on the stock for the long term.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $0.0685 between high and low, or 1.41%. For the last week, the stock has had daily average volatility of 2.02%.
Since the stock is closer to the support from accumulated volume at $4.88 (0.61%)than the resistance at $5.51 (12.22%),our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
StockInvest.us is a research service that provides financial data and technical analysis of publicly traded stocks.All users should speak with their financial advisor before buying or selling any securities.Users should not base their investment decision upon StockInvest.us. By using the site you agree and are heldliable for your own investment decisions and agree to the Terms of Use and Privacy Policy.Please read the full disclaimer here.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Valuing GoPro stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of GoPro's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
GoPro (NASDAQ: GPRO) has faced a tumultuous ride as a public company. But it now understands its place in the camera market and has adjusted inventory and services accordingly. For investors, the stock may be a better value today than at any time the stock has been public. Travis Hoium gives details in the video below.
10 stocks we like better than GoProWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks' proprietary data indicates that GoPro, Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the GPRO shares relative to the market in the next few months. In addition, GoPro, Inc. has a VGM Score of A (this is a weighted average of the individual Style Scores which allow you to focus on the stocks that best fit your personal trading style). Valuation metrics show that GoPro, Inc. may be undervalued. Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of GPRO, demonstrate its potential to outperform the market. It currently has a Growth Score of A. Recent price changes and earnings estimate revisions indicate this would not be a good stock for momentum investors with a Momentum Score of F.
The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. It's packed with all of the company's key stats and salient decision making information. Including the Zacks Rank, Zacks Industry Rank, Style Scores, the Price, Consensus & Surprise chart, graphical estimate analysis and how a stocks stacks up to its peers.
The detailed multi-page Analyst report does an even deeper dive on the company's vital statistics. In addition to all of the proprietary analysis in the Snapshot, the report also visually displays the four components of the Zacks Rank (Agreement, Magnitude, Upside and Surprise); provides a comprehensive overview of the company business drivers, complete with earnings and sales charts; a recap of their last earnings report; and a bulleted list of reasons to buy or sell the stock. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500.
The Value Scorecard identifies the stocks most likely to outperform based on its valuation metrics. This list of both classic and unconventional valuation items helps separate which stocks are overvalued, rightly lowly valued, and temporarily undervalued which are poised to move higher.
The Momentum Scorecard focuses on price and earnings momentum and indicates when the timing is right to enter a stock. The analyzed items go beyond simple trend analysis. The tested combination of price performance, and earnings momentum (both actual and estimate revisions), creates a powerful timeliness indicator to help you identify stocks on the move so you know when to get in and when to get out. 041b061a72