Why Value Investors Need to Keep an Eye on GoPro Stock

GPRO is less than 5% off its 52-week low

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GoPro, Inc. (NASDAQ:GPRO) is an American technology company with a focus on the connected sports genre, developing a line of action cameras and video editing software. GRPO manufactures action cameras, accessories, lifestyle gear, and develops its own mobile apps and video-editing software. At last check, the equity was up 5.5% at $5.56.

GoPro stock price has decreased about 48% year-over-year and GPRO is currently trading down 54% since peaking at a 52-week high of $12.14 last November. Shares of GPRO are also down 48% year-to-date and have dropped in price 17% over the past month. In addition, GoPro stock is currently trading just 4% up off its 52-week low of $5.35 tapped at the end of June.

As a result, GoPro stock has reached an intriguing price-point from a value investor’s perspective. With the markets in what seems like a constant decline, GPRO's forward price-earnings ratio has been brought down to 5.56. GoPro stock now also trades at a price-sales ratio of 0.82.

Moreover, fiscal 2022 estimates have the tech business ending the year with 7% revenue growth and 1.1% earnings growth. GPRO  is also expected report 5.5% revenue growth and 26.4% earnings growth for fiscal 2023. In addition, GoPro maintains a healthy balance sheet with $449.94 million in cash and $315.33 million in debt, making GPRO a relatively safe and undervalued small cap stock.

Although the sports tech company has struggled to stay profitable and produce consistent revenue growth in the past, it seems to be finding stability in a time where safe fundamentals and low valuations are key. This could potentially mean significant gains for GoPro stock in the coming years.

Meanwhile, short-term options traders have rarely been more call-biased. This is per the security's Schaeffer's put/call open interest ratio (SOIR) of 0.28, which ranks in the bottom-most percentile of annual readings. 

 
 

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