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Roku (ROKU) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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Roku (ROKU - Free Report) closed the most recent trading day at $77.45, moving +0.12% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.7%. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 2.51%.

Coming into today, shares of the video streaming company had gained 23.24% in the past month. In that same time, the Consumer Discretionary sector gained 2.85%, while the S&P 500 gained 1.27%.

Investors will be eagerly watching for the performance of Roku in its upcoming earnings disclosure. On that day, Roku is projected to report earnings of -$0.35 per share, which would represent year-over-year growth of 84.98%. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, up 11.07% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.45 per share and revenue of $3.97 billion. These totals would mark changes of +71.06% and +13.85%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Roku. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained stagnant. Right now, Roku possesses 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 186, this industry ranks in the bottom 27% of all industries, numbering over 250.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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