Back to top

Image: Bigstock

Roku (ROKU) Advances While Market Declines: Some Information for Investors

Read MoreHide Full Article

Roku (ROKU - Free Report) ended the recent trading session at $80.41, demonstrating a +0.19% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 1.55%, and the tech-heavy Nasdaq lost 0.35%.

Prior to today's trading, shares of the video streaming company had gained 1.47% over the past month. This has outpaced the Consumer Discretionary sector's loss of 0.86% and the S&P 500's loss of 2.31% in that time.

The investment community will be paying close attention to the earnings performance of Roku in its upcoming release. The company is predicted to post an EPS of -$0.27, indicating a 22.86% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1 billion, up 13.92% from the prior-year quarter.

ROKU's full-year Zacks Consensus Estimates are calling for earnings of -$0.27 per share and revenue of $4.62 billion. These results would represent year-over-year changes of +69.66% and +12.23%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Roku. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 71.1% rise in the Zacks Consensus EPS estimate. Roku is currently sporting a Zacks Rank of #2 (Buy).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Roku, Inc. (ROKU) - free report >>

Published in