Roku (ROKU) Gains But Lags Market: What You Should Know

Roku (ROKU) closed the most recent trading day at $82.53, moving +0.13% from the previous trading session. This change lagged the S&P 500's 2.28% gain on the day. Meanwhile, the Dow gained 2.24%, and the Nasdaq, a tech-heavy index, added 1.72%.

Coming into today, shares of the video streaming company had lost 24.81% in the past month. In that same time, the Consumer Discretionary sector lost 22.27%, while the S&P 500 lost 16.08%.

Wall Street will be looking for positivity from ROKU as it approaches its next earnings report date. The company is expected to report EPS of -$0.45, down 400% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $284.52 million, up 37.67% from the year-ago period.

ROKU's full-year Zacks Consensus Estimates are calling for earnings of -$1.39 per share and revenue of $1.55 billion. These results would represent year-over-year changes of -167.31% and +37.28%, respectively.

It is also important to note the recent changes to analyst estimates 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 shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, the Zacks Consensus EPS estimate has moved 24.41% lower. ROKU is holding a Zacks Rank of #3 (Hold) right now.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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