In the latest close session, Roku (ROKU) was down 1.5% at $96.03. The stock's performance was behind the S&P 500's daily loss of 0.53%. Elsewhere, the Dow saw a downswing of 0.71%, while the tech-heavy Nasdaq depreciated by 0.93%.
Heading into today, shares of the video streaming company had lost 1.53% over the past month, lagging the Consumer Discretionary sector's loss of 0.52% and the S&P 500's gain of 1.13%.
Investors will be eagerly watching for the performance of Roku in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 30, 2025. It is anticipated that the company will report an EPS of $0.07, marking a 216.67% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.21 billion, up 13.46% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.14 per share and a revenue of $4.66 billion, representing changes of +115.73% and +13.24%, respectively, from the prior year.
Any recent changes to analyst estimates for Roku should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 18.71% increase. Right now, Roku possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Roku is holding a Forward P/E ratio of 701.93. This represents a premium compared to its industry average Forward P/E of 31.8.
It is also worth noting that ROKU currently has a PEG ratio of 11.5. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Broadcast Radio and Television industry had an average PEG ratio of 1.89.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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