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Roku (ROKU) Increases Yet Falls Behind Market: What Investors Need to Know

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Roku (ROKU - Free Report) closed at $61.42 in the latest trading session, marking a +0.39% move from the prior day. This change lagged the S&P 500's 0.73% gain on the day. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.93%.

Shares of the video streaming company witnessed a loss of 10.75% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 1.02% and the S&P 500's loss of 2.29%.

The upcoming earnings release of Roku will be of great interest to investors. The company's earnings report is expected on November 1, 2023. The company is forecasted to report an EPS of -$1.91, showcasing a 117.05% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $855.35 million, up 12.34% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$5.32 per share and revenue of $3.39 billion, indicating changes of -46.96% and +8.34%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Roku. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.76% downward. Roku is currently sporting a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 18% 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.

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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