Technology

Roku (ROKU) Dips More Than Broader Markets: What You Should Know

Roku (ROKU) closed at $60.99 in the latest trading session, marking a -0.88% move from the prior day. This change lagged the S&P 500's 0.22% loss on the day. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Prior to today's trading, shares of the video streaming company had lost 4.32% over the past month. This has lagged the Consumer Discretionary sector's gain of 7.12% and the S&P 500's gain of 4.87% in that time.

Wall Street will be looking for positivity from ROKU as it approaches its next earnings report date. This is expected to be May 8, 2019. The company is expected to report EPS of -$0.24, down 242.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $189.06 million, up 38.43% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.72 per share and revenue of $1.02 billion, which would represent changes of -800% and +37.22%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ROKU. Recent revisions tend to reflect the latest 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 shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. ROKU currently has a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


Click to get this free report

Roku, Inc. (ROKU): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.