Vizio Holding Corp Cl A
Vizio Holding Corp Cl A
IBD Stock Analysis
- Shares hit a buy point Wednesday of 26 out of an IPO base
- Earlier in the session, Vizio stock hit an all-time high of 27.45
- Five investment banks recently started coverage with buy ratings
Industry Group Ranking
* Not real-time data. All data shown was captured at
12:59PM EDT on
The Irvine, Calif.-based company started trading on March 25 with its initial public offering priced at $21.
On Wednesday, Vizio stock hit a buy point of 26 out of an IPO base, according to IBD MarketSmith charts. In afternoon trading it remained in the 5% buy zone of its breakout, which extends to 27.30. In recent trades, Vizio stock was up 8.8% to 26.95.
Earlier in the session Wednesday, Vizio stock notched an all-time high of 27.48.
Vizio Stock Receives Buy Ratings
Wall Street is upbeat on Vizio’s prospects. On April 19, at least five investment banks started coverage of Vizio stock with buy ratings.
Vizio’s claim to fame centers on the production of low-priced smart television sets and soundbars. But it also provides a platform for selling ads to users of its connected TVs. Vizio is looking to follow the success of rival Roku (ROKU) in the advertiser-supported internet video market. Currently, Vizio has 12.2 million active accounts in the U.S.
“Vizio is well positioned to capitalize on the streaming video market growth through its powerful combination of high-quality, affordable television hardware and award-winning streaming operating system,” Guggenheim analyst Michael Morris said in a note to clients. He rates Vizio stock as a buy with a price target of 28.
Wells Fargo analyst Steven Cahall rates Vizio stock as overweight with a price target of 31.
“Vizio is uniquely integrated between smart TV sets and its connected TV (CTV) operating system, implying advantages to building an installed base of monetizable active users in the fast-growing CTV marketplace,” he said in a note to clients.
First-Quarter Earnings Due May 11
The next catalyst for Vizio stock could be the company’s first-quarter earnings report. It plans to release its March-quarter results on May 11.
Wall Street expects Vizio to lose 6 cents a share on sales of $485.2 million in the first quarter, according to S&P Global Market Intelligence.
Vizio is one of two consumer electronics firms to go public in the last month or so. The other is Cricut (CRCT), which makes devices for cutting and printing craft items like greeting cards, 3D art and labels.
Vizio stock ranks third out of 13 stocks in IBD’s consumer electronics industry group, according to IBD Stock Checkup. That group ranks No. 44 out of 197 industry groups that IBD tracks.
Vizio stock has an IBD Composite Rating of 92 out of 99. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
Meanwhile, Vizio stock has an IBD Relative Strength Rating of 76 out of 99. That means it has been outperforming 76% of stocks on the market over the past 12 months.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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