The latest trading session saw Roku (ROKU) ending at $71.37, denoting a +1.09% adjustment from its last day's close. This change outpaced the S&P 500's 0.67% gain on the day. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 0.87%.
The the stock of video streaming company has fallen by 12.2% in the past month, lagging the Consumer Discretionary sector's loss of 8.16% and the S&P 500's loss of 5.28%.
Market participants will be closely following the financial results of Roku in its upcoming release. It is anticipated that the company will report an EPS of -$0.27, marking a 22.86% rise compared to the same quarter of the previous year. 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.26 per share and a revenue of $4.62 billion, representing changes of +70.79% and +12.23%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Roku. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.42% upward. Roku presently features a Zacks Rank of #3 (Hold).
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 23% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Roku, Inc. (ROKU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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