Roku (ROKU) closed the most recent trading day at $98.28, moving +2.34% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.31%, and the technology-centric Nasdaq increased by 0.89%.
Shares of the video streaming company witnessed a loss of 2.22% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 2.64%, and underperforming the S&P 500's gain of 0.16%.
The investment community will be paying close attention to the earnings performance of Roku in its upcoming release. The company is slated to reveal its earnings on October 30, 2025. The company's earnings per share (EPS) are projected to be $0.07, reflecting a 216.67% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.21 billion, reflecting a 13.46% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.14 per share and revenue of $4.66 billion, which would represent changes of +115.73% and +13.24%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Roku. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 18.71% upward. At present, Roku boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Roku has a Forward P/E ratio of 691.42 right now. For comparison, its industry has an average Forward P/E of 31.59, which means Roku is trading at a premium to the group.
It's also important to note that ROKU currently trades at a PEG ratio of 11.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Broadcast Radio and Television industry had an average PEG ratio of 1.89 as trading concluded yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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