GoPro (GPRO) to Pull Production Out of China
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.
Momentum Indicator for GPRO turns negative, indicating new downward trend
GPRO saw its Momentum Indicator move below the 0 level on April 04, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 78 similar instances where the indicator turned negative. In of the 78 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for GPRO turned negative on April 05, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GPRO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for GPRO entered a downward trend on April 05, 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.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 11 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GPRO advanced for three days, in of 288 cases, the price rose further within the following month. The odds of a continued upward trend are .
GPRO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
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 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 (77.054). P/E Ratio (21.552) is within average values for comparable stocks, (44.654). 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 (65.367).
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 88, placing this stock worse than average.
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a manufacturer and seller of cameras and camera accessories
Industry ElectronicsAppliances