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Bull of the Day: Roku (ROKU)
I could get used to a market like this. All-time highs nearly every day? Yes, please! But, we can’t rest on our laurels around here. The market has a funny way of surprising us the most when everyone is starting to get a little too greedy and a little too complacent.
That doesn’t mean that we can’t celebrate the big winners we see them. There are a ton of stocks out there that are rallying for good reasons, and are seeing their earnings move instep with those stock prices. The Zacks Rank helps us uncover those stocks with the strongest earnings trends. Trends like we see in today’s Bull of the Day.
Today’s Bull of the Day is Zacks Rank #1(Strong Buy) Roku ((ROKU - Free Report) ). Roku is a leading company in the streaming media industry, primarily known for its digital media players and smart TV operating system. The company’s business is centered around three key areas, Streaming devices and Smart TVs, advertising and content distribution, as well as platform services and subscriptions.
The reason for the favorable Zacks Rank is that Roku’s last earnings report prompted several analysts around Wall Street to increase their earnings estimates for the current year and next year. On February 13th, the company reported a beat on both top and bottom lines, while guiding initial FY25 revenues of $4.61 billion.
Image Source: Zacks Investment Research
As a result, analysts bumped up their expectations for both the current year and next year. Our current year Zacks Consensus Estimate calls for a loss of 80 cents, up from a loss of 93 cents sixty days ago. Next year’s number has pushed up to a profit of a dime versus expectations for a nickel loss.
A quick look at the Price, Consensus and EPS Surprise Chart shows the consistency recently in Roku’s earnings. Five consecutive quarterly earnings beats for the company now. Estimates continue to start lower and spend the year ticking higher. That’s exactly what you want to see from a long-term winner. Roku is still well off its all-time highs which sit over $450. The stock is currently trading below $100.