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Fox Factory Holding - AI Stock Analysis

Analysis generated October 31, 2024

Fox Factory Holding Corp. is a renowned designer, manufacturer, and marketer of high-performance products. They provide a suite of solutions primarily for bicycles, powered vehicles, and motorcycles. Established in 1974, Fox's expertise lies in delivering superior suspension systems that significantly enhance performance and user experience.

Fundamental Analysis

For the last quarter, Fox Factory Holding reported a revenue of $335 million. This figure represents an increase of 4.41% compared to the previous quarter, a positive sign indicating short-term growth. However, compared to the same quarter the previous year, there is a notable decrease of 15.56%, signaling potential long-term issues and market challenges.

Net income for the last quarter stands at $5.4 million, which is a robust increase of 254.66% compared to the previous quarter. While this short-term growth is commendable, it's worth noting that it represents an 86.39% decrease compared to the same quarter last year, suggesting the company is facing profitability challenges.

EBITDA for the last quarter was $39 million, reflecting a substantial increase of 35.45% compared to the previous quarter. Nonetheless, similar to revenue and net income, there is a 41.90% decrease compared to the same quarter last year, indicating diminishing operating efficiency.

The current P/E ratio stands at 38.46, a relatively high number that might suggest the stock is overvalued, contributing to a potentially bearish outlook. Additionally, the presence of insider selling in recent months further reinforces a bearish sentiment among those closest to the company.

Technical Analysis

Today's stock price for Fox Factory Holding is $35.99, a decrease of 12.45% compared to a month ago. While short-term performance is concerning, the year-on-year perspective is even more troubling with a decline of 55.70%, suggesting substantial long-term challenges.

Analyzing the moving averages, the current SMA10 is $37.11, which is lower than the previous SMA10 value of $37.39. This downward shift indicates a potential bearish trend in price movement. The RSI value stands at 24.6, suggesting that the stock is potentially oversold, which could hint at a bullish condition if market sentiment shifts.

Alternative Data Analysis

Regarding job postings and employee sentiment, Fox Factory Holding has 98 open positions, a number that has been stable over the last couple of months, indicating a stable employment environment. However, the business outlook has decreased by 10% in the same period, raising concerns about future prospects.

On the customer acquisition front, Fox Factory Holding’s website attracted an estimated 710,000 visitors. This figure is down by 12% over the last few months, inducing worry over a potential decline in customer base and engagement.

Customer engagement metrics are also concerning, with Fox Factory Holding’s Instagram followers down by 1% to 2.1 million and Twitter followers down by 1% to 71,000. Such declines in social media engagement may reflect waning consumer interest.

The AltIndex AI score for Fox Factory Holding is 15, which aligns with a strong sell signal based on aggregated alternative data factors, including fundamental and technical analysis.

Conclusion and Recommendation

In summary, Fox Factory Holding Corp. demonstrates certain positive aspects such as short-term increases in revenue, net income, and EBITDA. However, these are overshadowed by critical long-term declines in these same metrics, alongside a high P/E ratio, insider selling, and bearish technical indicators.

The alternative data points such as a decline in website visitors, social media following, and business sentiment further underscore existing concerns. The AltIndex AI score of 15 strongly suggests a sell signal, reflecting the aggregated bearish indicators from various analyses.

Based on the comprehensive analysis provided, it is recommended to adopt a cautious or sell approach towards Fox Factory Holding’s stock given the numerous red flags signaling potential future challenges.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.