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Why the Market Dipped But Roku (ROKU) Gained Today

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In the latest market close, Roku (ROKU - Free Report) reached $62.08, with a +0.04% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.06%.

The video streaming company's shares have seen an increase of 13.96% over the last month, surpassing the Consumer Discretionary sector's loss of 1.18% and the S&P 500's gain of 1.96%.

The investment community will be closely monitoring the performance of Roku in its forthcoming earnings report. The company is scheduled to release its earnings on August 1, 2024. The company is predicted to post an EPS of -$0.45, indicating a 40.79% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $935.29 million, showing a 10.4% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of -$1.94 per share and a revenue of $3.92 billion, signifying shifts of +61.28% and +12.46%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Roku. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Roku is currently sporting 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 100, this industry ranks in the top 40% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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