In the latest market close, Roku (ROKU) reached $58.46, with a +0.1% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.13% for the day. Meanwhile, the Dow experienced a drop of 1.33%, and the technology-dominated Nasdaq saw a decrease of 0.13%.
Heading into today, shares of the video streaming company had lost 19.05% over the past month, lagging the Consumer Discretionary sector's loss of 7.24% and the S&P 500's loss of 6.3% in that time.
The investment community will be paying close attention to the earnings performance of Roku in its upcoming release. The company is forecasted to report an EPS of -$0.27, showcasing a 22.86% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1 billion, up 13.98% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.26 per share and a revenue of $4.59 billion, signifying shifts of +70.79% and +11.52%, respectively, from the last 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.42% higher. Right now, Roku possesses a Zacks Rank of #2 (Buy).
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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