Roku (ROKU) closed at $90.27 in the latest trading session, marking a +1.84% move from the prior day. This change outpaced the S&P 500's 0.28% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.09%.
Shares of the video streaming company witnessed a gain of 10.13% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 5.57%, and the S&P 500's gain of 4.37%.
Market participants will be closely following the financial results of Roku in its upcoming release. On that day, Roku is projected to report earnings of -$0.17 per share, which would represent year-over-year growth of 29.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.07 billion, up 10.62% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.18 per share and revenue of $4.55 billion, which would represent changes of +79.78% and +10.54%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Roku. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.51% increase. As of now, Roku holds a Zacks Rank of #2 (Buy).
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 152, positioning it in the bottom 39% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Roku, Inc. (ROKU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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