Back to top

Image: Bigstock

Roku (ROKU) Ascends While Market Falls: Some Facts to Note

Read MoreHide Full Article

In the latest trading session, Roku (ROKU - Free Report) closed at $64.77, marking a +0.06% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.39%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq lost 2.77%.

The video streaming company's stock has climbed by 23.23% in the past month, exceeding the Consumer Discretionary sector's gain of 2.53% and the S&P 500's gain of 4.43%.

The investment community will be closely monitoring the performance of Roku in its forthcoming earnings report. It is anticipated that the company will report an EPS of -$0.45, marking a 40.79% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $935.29 million, indicating a 10.4% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of -$1.94 per share and a revenue of $3.92 billion, demonstrating changes of +61.28% and +12.46%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Roku. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Roku boasts a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 171, this industry ranks in the bottom 33% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Roku, Inc. (ROKU) - free report >>

Published in