Roku (ROKU) ended the recent trading session at $70.60, demonstrating a +0.23% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.38%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.87%.
The video streaming company's shares have seen a decrease of 12.24% over the last month, not keeping up with the Consumer Discretionary sector's loss of 8.24% and the S&P 500's loss of 5.59%.
The investment community will be paying close attention to the earnings performance of Roku in its upcoming release. On that day, Roku is projected to report earnings of -$0.27 per share, which would represent year-over-year growth of 22.86%. In the meantime, our current consensus estimate forecasts the revenue to be $1 billion, indicating a 13.92% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.26 per share and revenue of $4.62 billion, indicating changes of +70.79% and +12.23%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Roku. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.42% higher within the past month. Roku is currently a Zacks Rank #3 (Hold).
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Roku, Inc. (ROKU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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