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Roku (ROKU) Advances While Market Declines: Some Information for Investors

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Roku (ROKU - Free Report) ended the recent trading session at $74.41, demonstrating a +0.96% swing from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.13%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.39%.

Shares of the video streaming company have appreciated by 7.69% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 4.45% and the S&P 500's gain of 2.43%.

The upcoming earnings release of Roku will be of great interest to investors. It is anticipated that the company will report an EPS of -$0.35, marking an 84.98% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.01 billion, up 11.18% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$1.44 per share and revenue of $3.97 billion, indicating changes of +71.26% and +13.93%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Roku. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.3% higher within the past month. As of now, Roku holds 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 204, this industry ranks in the bottom 20% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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