GoPro (GPRO) outpaces stock market gains: what you need to know

goPro (GPRO) closed the last trading day at $10.44, +0.19% from the previous trading session. That move topped the S&P 500’s 0.08% daily gain. Meanwhile, the Dow lost 0.56% and the Nasdaq, a technology-heavy index, lost 4.81%.

Going into today, shares of the action video camera maker had lost 0.19% over the past month, outpacing the consumer discretionary sector’s loss of 1.32% and trailing of the 0.64% gain in the S&P 500 during this period.

GoPro will look to show strength ahead of its next earnings release, which is expected to be February 3, 2022. On that day, GoPro is expected to report earnings of $0.35 per share, which would represent a decline from one year to the next. of 10.26%. Meanwhile, our latest consensus estimate calls for revenue of $383.15 million, up 7.09% from the prior year quarter.

Investors might also notice recent changes in analyst estimates for GoPro. These recent revisions tend to reflect the evolving nature of short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated to short-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.

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 has remained flat. GoPro currently sports a Zacks rank of #3 (Hold).

Digging into the valuation, GoPro currently has a Forward P/E ratio of 10.82. This represents a discount to the average PER of its sector of 12.79.

The audio video production industry is part of the consumer discretionary sector. This industry currently has a Zacks Industry Rank of 79, which places it in the top 31% of the 250+ industries.

The Zacks Industry Ranking assesses the strength of our individual 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.