Technically, timing appears good within a medium term time horizon to buy shares in Fox Factory Holding Corp.. The technical support area at 59.29 USD effectively limits downside risk and should allow the stock to get back into an upward dynamic.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The share is getting closer to its long-term support in weekly data, at USD 59.29, which offers good timing for buyers.
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 45% by 2021.
● The company is in a robust financial situation considering its net cash and margin position.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● With a 2019 P/E ratio at 28.07 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
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Fox Factory Holding Corp. designs, engineers, manufactures and markets performance-defining products and systems for customers worldwide. The Companyâs segments include Powered Vehicles Group, Aftermarket Applications Group, and Specialty Sports Group. Powered Vehicles Group includes premium products sold under the FOX brand for off-road vehicles and trucks, side-by-side, on-road vehicles with and without off-road capabilities, snowmobiles, specialty vehicles and applications, motorcycles, and commercial trucks. Aftermarket Applications Group offers a range of aftermarket applications products including premium products under the BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4x4 Posi-Lok, Ridetech, Tuscany, Outside Van, SCA, and Custom Wheel House brands. Specialty Sports Group bike product offerings are used on a wide range of performance mountain bikes, e-bikes and gravel bikes under the FOX, Race Face, Easton Cycling and Marzocchi brands.