In the latest close session, Roku (ROKU) was down 2.41% at $96.99. This change lagged the S&P 500's 0.27% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.37%.
Heading into today, shares of the video streaming company had gained 21.22% over the past month, outpacing the Consumer Discretionary sector's gain of 6.14% and the S&P 500's gain of 1.85%.
The upcoming earnings release of Roku will be of great interest to investors. The company is expected to report EPS of $0.07, up 216.67% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.21 billion, indicating a 13.46% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.12 per share and a revenue of $4.66 billion, indicating changes of +113.48% and +13.24%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Roku. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Roku presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Roku is currently exchanging hands at a Forward P/E ratio of 849.49. This expresses a premium compared to the average Forward P/E of 28.21 of its industry.
We can also see that ROKU currently has a PEG ratio of 13.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Broadcast Radio and Television industry currently had an average PEG ratio of 1.65 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 178, this industry ranks in the bottom 28% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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