Q2 STOCKS TO BUY

With Plans to Enter Gaming Market, Is It Time to Buy Funko Stock?

Shares of FNKO hit a two-year high in early August

facebook X logo linkedin


Funko Inc (NASDAQ:FNKO) is an American company that produces pop culture collectibles. Earlier in the summer, Funko announced its plans to enter the video game market during its Hall H-Pop! Talk panel. The firm will team up with developer 10:10 Games to produce an AAA Action Platformer next year, which will be spearheaded by video game developer and five-time BAFTA award winner Jon Burton.

Funko stock has managed an 8.2% year-to-date lead, and has added 25.4% in the last nine months. In early August, the stock surged to a fresh two-year high of $27.79. However, FNKO has cooled considerably since then, and yesterday it settled below the formerly supportive 100-day moving average for the first time since early May. 

fnko sept 2

Despite its recent drop, analysts remain incredibly bullish. Of the six on coverage, all but one call it a "strong buy." Plus, the 12-month consensus price target of $29.43 is a 44.6% premium to last night's close. 

Options players have been overwhelmingly optimistic as well. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), eight calls have been picked up for every put during the past 10 weeks. This ratio stands above all other readings from the past year, implying a much healthier-than-usual appetite for long calls of late. 

Moreover, Funko stock remains an intriguing growth play considering its valuation metrics. FNKO trades at a decent price-earnings ratio of 18.21 and a low price-sales ratio of 0.88. The collectibles company has also generated a 79% increase in annual revenues and a 414% increase in annual net income since fiscal 2018. In addition, Funko is expected to end fiscal 2022 with strong growth figures, including 29.7% revenue growth and 35.2% earnings growth. FNKO is also estimated to see an 8.6% increase in revenues and a 10.9% increase in earnings for fiscal 2023, which are solid figures as well. Nonetheless, they do suggest an expected slowdown in growth rate. Still, Funko stock offers investors a good mix of decent fundamentals and speculative growth opportunity.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter