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Roku (ROKU) Gains But Lags Market: What You Should Know

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In the latest market close, Roku (ROKU - Free Report) reached $75.89, with a +0.58% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.9%. Meanwhile, the Dow experienced a rise of 0.81%, and the technology-dominated Nasdaq saw an increase of 1.22%.

The video streaming company's shares have seen an increase of 13.12% over the last month, surpassing the Consumer Discretionary sector's gain of 4.88% and the S&P 500's gain of 3.15%.

Analysts and investors alike will be keeping a close eye on the performance of Roku in its upcoming earnings disclosure. The company is expected to report EPS of -$0.35, up 84.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.01 billion, up 11.18% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$1.44 per share and a revenue of $3.97 billion, indicating changes of +71.26% and +13.93%, respectively, from the former 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, the Zacks Consensus EPS estimate has shifted 1.3% upward. Roku is currently sporting a Zacks Rank of #2 (Buy).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 192, placing it within the bottom 24% of over 250 industries.

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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