Yahoo Finance Here Are 3 Audio-Video Stocks to Add to Watchlist for 2024
The audio-video industry plays a crucial role in shaping the entertainment landscape. With technological advancement, the demand for high-quality audio and video experiences continues to soar.
The integration of AI-powered technologies, voice recognition, and Internet of Things or IoT connectivity has converted audio-video products into highly sophisticated and interconnected ecosystems, offering users highly customized entertainment solutions.
Despite continuous technological innovation, the audio-video industry currently faces challenges such as global macroeconomic weakness and inflationary pressure, which are impacting consumer demand. Fierce competition from importers of comparatively low-priced devices is putting pressure on these players.
Nevertheless, companies are strategically concentrating on the premium segment of the branded products market to overcome these challenges. Investments in cutting-edge technology solutions that enhance communication experiences and the anticipation of easing supply chain issues position these companies for future success.
We bring you three companies: GoPro GPRO, Panasonic Holdings Corporation PCRFY and Sharp Corporation SHCAY. Each company contributed distinctively to the audio-video industry. By analyzing their business strategies, we provide insights that are likely to be beneficial to investors.
3 Stocks to Add to Keep an Eye On
Panasonic Holdings Corporation: Japan-based Panasonic is a worldwide leader in the development and manufacture of electronic products for a wide range of consumer, business and industrial needs.
The company’s Automotive segment is likely to benefit from a recovery in automobile production. Increased sales in Avionics and Blue Yonder and recovery in the aviation industry are major tailwinds for the Connect business segment. However, weakening conditions for consumer electronics businesses and a muted environment for HVAC businesses (especially A2W in Europe) are a concern.
Currently, PCRFY carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The consensus estimate for its current-year earnings is pegged at $1.24 per share, up 14.8% in the past 60 days. The long-term EPS growth rate is pegged at 24.4%.
PCRFY’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average surprise being 438.3%. Shares of PCRFY have surged 15.5% in the past year.
GoPro: Headquartered in San Mateo, CA, GoPro is one of the leading manufacturers of the world's most handy camera and an enabler of some of today's most immersive and engaging content.
GoPro’s performance is being cushioned by a higher subscriber base and an expansion of its retail presence. The company’s subscriber base rose 20% year over year in the last reported quarter. It also plans to restore its retail presence to pre-pandemic levels. The introduction of a new Quik desktop app and a premium GoPro subscription tier will boost subscriber growth.
Management projects 2023 revenues and unit sales to be ahead of its earlier guidance. Revenues are anticipated to be $1.04 billion (+/-$5 million) compared with the prior projection of $1.03 billion (+/-$30 million).
However, higher sales of lower-margin entry-level cameras are affecting margin performance. The company expects uncertain macroeconomic conditions might keep consumer spending under pressure in the fourth quarter.
At present, GoPro carries a Zacks Rank #3.
The Zacks Consensus Estimate for its current-year bottom line is pegged at a loss of 19 cents per share, unchanged in the past 60 days per share.
Sharp Corporation: Japan-based Sharp Corporation is engaged in the manufacturing and sales of telecommunications equipment, electric and electronic application equipment, and electronic components.
In the last reported quarter, Sharp noted that demand for consumer electronics was sluggish as consumer spending shifted to travel and eating out and so on. However, the company expects revenues for the fiscal 2023 to be ¥2,560 billion, up 0.5% on a year-over-year basis.
The stock carries a Zacks Rank #3. The Zacks Consensus Estimate for its current-year bottom line is pegged at 4 cents per share, suggesting an improvement over the loss of 15 cents reported in the previous year.
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GoPro, Inc. (GPRO) : Free Stock Analysis Report
Sharp Corp. (SHCAY) : Free Stock Analysis Report
Panasonic Corp. (PCRFY) : Free Stock Analysis Report
