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Roku (ROKU) Outpaces Stock Market Gains: What You Should Know

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Roku (ROKU - Free Report) closed the latest trading day at $88.83, indicating a +0.68% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq increased by 0.19%.

Prior to today's trading, shares of the video streaming company had lost 6.37% over the past month. This has lagged the Consumer Discretionary sector's gain of 0.31% and the S&P 500's gain of 2.48% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Roku in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.65, reflecting a 61.76% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $959.66 million, indicating a 10.68% upward movement from the same quarter last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Roku. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.43% higher. Roku is currently sporting a Zacks Rank of #2 (Buy).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 202, this industry ranks in the bottom 20% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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