Roku (ROKU) Stock Slides as Market Rises: Facts to Know Before You Trade

Roku (ROKU) closed the most recent trading day at $63.16, moving -0.87% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.52%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq gained 0.9%.

Heading into today, shares of the video streaming company had lost 27.65% over the past month, lagging the Consumer Discretionary sector's gain of 0.4% and the S&P 500's gain of 3.85% in that time.

The investment community will be closely monitoring the performance of Roku in its forthcoming earnings report. On that day, Roku is projected to report earnings of -$0.68 per share, which would represent year-over-year growth of 50.72%. In the meantime, our current consensus estimate forecasts the revenue to be $850.98 million, indicating a 14.84% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$2.13 per share and a revenue of $3.85 billion, indicating changes of +57.49% and +10.46%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Roku. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.53% higher 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. At present, this industry carries a Zacks Industry Rank of 175, placing it within the bottom 31% of over 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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.

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