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

The latest trading session saw Roku (ROKU) ending at $59.83, denoting a -0.68% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 1.11%. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.24%.

Shares of the video streaming company have depreciated by 4.49% over the course of the past month, underperforming the Consumer Discretionary sector's loss of 1.14% and the S&P 500's gain of 0.48%.

Market participants will be closely following the financial results of Roku in its upcoming release. The company is predicted to post an EPS of -$0.68, indicating a 50.72% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $850.98 million, up 14.84% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$2.16 per share and a revenue of $3.85 billion, indicating changes of +56.89% and +10.46%, respectively, from the former year.

Any recent changes to analyst estimates for Roku should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% 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. At present, this industry carries a Zacks Industry Rank of 213, placing it within the bottom 16% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on 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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