Leading action camera-maker, GoPro, announced on Monday that it will move production of U.S. bound cameras out of China, in order to avoid getting caught up in the tariff war. However, the company added that international-bound camera production will remain in China with focus on the non-U.S. markets.
In an official statement released on Monday, GoPro’s Chief Financial Officer Brian McGee said that "today’s geopolitical business environment requires agility, and we’re proactively addressing tariff concerns by moving most of our U.S.-bound camera production out of China. We believe this diversified approach to production can benefit our business regardless of tariff implications."
He also confirmed that movement will be complete in 2019 and if necessary, will be completed within the first half of 2019.
The California-based company has not yet announced just where it will move its America-bound production, but it seems highly unlikely these new jobs will move stateside due to prohibitively expensive labor costs. Another option such as Vietnam might make more sense, as it maintains the cost advantage.
Once a must-have for surfers, skydivers and other action junkies, GoPros’ trademark action-cameras have seen substantial drop in demand owing to rising competition. As it battles waning demand for its products, any increase in the product prices could prove pivotal in the company’s struggle to maintain profitability.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where GPRO declined for three days, in of 284 cases, the price declined further within the following month. The odds of a continued downward trend are .
GPRO broke above its upper Bollinger Band on May 01, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for GPRO entered a downward trend on May 01, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where GPRO's RSI Indicator exited the oversold zone, of 41 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 66 cases where GPRO's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 01, 2024. You may want to consider a long position or call options on GPRO as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for GPRO just turned positive on April 26, 2024. Looking at past instances where GPRO's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GPRO advanced for three days, in of 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.605) is normal, around the industry mean (79.080). P/E Ratio (21.552) is within average values for comparable stocks, (45.119). GPRO's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.742). GPRO has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.025). P/S Ratio (0.342) is also within normal values, averaging (68.706).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. GPRO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GPRO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer and seller of cameras and camera accessories
Industry ElectronicsAppliances