Roku (ROKU) Stock Sinks As Market Gains: What You Should Know
Roku (ROKU) closed at $222.32 in the latest trading session, marking a -1.83% move from the prior day. This move lagged the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq lost 0.36%.
Prior to today's trading, shares of the video streaming company had gained 37.53% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.53% and the S&P 500's gain of 2.55% 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 November 5, 2020. In that report, analysts expect ROKU to post earnings of -$0.41 per share. This would mark a year-over-year decline of 86.36%. Meanwhile, our latest consensus estimate is calling for revenue of $370.68 million, up 42.06% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.44 per share and revenue of $1.59 billion. These totals would mark changes of -176.92% and +41.16%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ROKU. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.61% higher. 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 105, putting it in the top 42% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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.