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Why the Market Dipped But Roku (ROKU) Gained Today

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Roku (ROKU - Free Report) closed the latest trading day at $75.47, indicating a +1.74% change from the previous session's end. This change outpaced the S&P 500's 0.17% loss on the day. On the other hand, the Dow registered a loss of 0.44%, and the technology-centric Nasdaq decreased by 0.04%.

The video streaming company's shares have seen an increase of 16.73% over the last month, surpassing the Consumer Discretionary sector's gain of 3.63% and the S&P 500's gain of 1.25%.

Investors will be eagerly watching for the performance of Roku in its upcoming earnings disclosure. 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, our latest consensus estimate is calling for revenue of $1.01 billion, up 11.18% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$1.44 per share and a revenue of $3.97 billion, representing changes of +71.26% and +13.93%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Roku. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.3% increase. Right now, Roku possesses a Zacks Rank of #2 (Buy).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 25% of all 250+ industries.

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

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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