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Roku (ROKU) Rises But Trails Market: What Investors Should Know

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In the latest market close, Roku (ROKU - Free Report) reached $60.22, with a +1.6% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 1.81%. Meanwhile, the Dow gained 1.56%, and the Nasdaq, a tech-heavy index, added 2.06%.

Coming into today, shares of the video streaming company had lost 12.36% in the past month. In that same time, the Consumer Discretionary sector lost 7.73%, while the S&P 500 lost 6.14%.

Investors will be eagerly watching for the performance of Roku in its upcoming earnings disclosure. The company is forecasted to report an EPS of -$0.27, showcasing a 22.86% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1 billion, showing a 13.98% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.26 per share and revenue of $4.59 billion. These totals would mark changes of +70.79% and +11.52%, respectively, from last year.

Any recent changes to analyst estimates for Roku should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.42% upward. Roku is currently sporting a Zacks Rank of #2 (Buy).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 61, finds itself in the top 25% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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