GoPro ($GPRO) is scheduled to report its fourth-quarter financial results after the markets close today. The action camera maker’s stock has dipped more than 71% since last August, after the Hero4 Session made its way to the market. It is less than two years the company went public, and it has been a roller coaster ride ever since. The stock was trading above $90 at one point, but since then slowly retreated to the current price level.
The Google Trend is showing that search volume is down about 17% from its peak in December of 2014 to December in 2015. Revenue has been revised down from $550M-$500M to $435M, a 21-13% decrease. Investors will be paying close attention to whether GoPro will deliver earnings above or below this key metric.
Using the SprinkleBit Analyzer, we compared GoPro’s ($GPRO) fundamentals to Garmin ($GRMN), Sony ($SNE), and Ambarella ($AMBA), who all compete in the action cam market. We also threw in FitBit ($FIT), since they as well are a hardware company with a limited product range. The analyzer ran the fundamental measures in comparison to the competition, and gave us an implied share price of $ 31.47. With the current trading price of $ 10.21, (2/3 @ 11:10 am) GoPro ($GPRO) is undervalued with 208.19%
This technical analysis on the hourly chart shows that on an earnings miss, the stock can fall to $9.80. If they beat on earnings, the stock has the potential to rise to $12.50 in the short run With the current trading price of $10.21, (2/3 @ 11.10 am) the trend shows a possible 4 % downside and a 22.43% upside. This represents a risk/reward ratio of 5.59.