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Why Roku (ROKU) Dipped More Than Broader Market Today

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Roku (ROKU - Free Report) closed the latest trading day at $76.79, indicating a -0.27% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.18%.

Heading into today, shares of the video streaming company had gained 4.34% over the past month, outpacing the Consumer Discretionary sector's gain of 3.25% and the S&P 500's gain of 2.76% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Roku in its upcoming earnings disclosure. The company's earnings report is set to go public on October 30, 2024. The company is predicted to post an EPS of -$0.35, indicating an 84.98% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.02 billion, up 11.35% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$1.44 per share and revenue of $3.97 billion, indicating changes of +71.26% and +13.99%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Roku. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Roku presently features a Zacks Rank of #1 (Strong Buy).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 100, positioning it in the top 40% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ROKU in the coming trading sessions, be sure to utilize Zacks.com.


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