Roku (ROKU) closed at $101.78 in the latest trading session, marking a +2.64% move from the prior day. This change outpaced the S&P 500's 0.49% gain on the day. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.72%.
The video streaming company's shares have seen an increase of 9.44% over the last month, surpassing the Consumer Discretionary sector's gain of 1.34% and the S&P 500's gain of 2.99%.
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 $0.07 per share, which would represent year-over-year growth of 216.67%. Our most recent consensus estimate is calling for quarterly revenue of $1.21 billion, up 13.46% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $0.12 per share and a revenue of $4.66 billion, demonstrating changes of +113.48% and +13.24%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Roku. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Roku is currently a Zacks Rank #3 (Hold).
Digging into valuation, Roku currently has a Forward P/E ratio of 847.52. This valuation marks a premium compared to its industry average Forward P/E of 30.49.
We can also see that ROKU currently has a PEG ratio of 13.88. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 2.03 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 25% 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.
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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