In the latest trading session, Roku (ROKU) closed at $113.28, marking a -1.22% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.62% for the day. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.65%.
Shares of the video streaming company have appreciated by 12.76% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 1.06%, and the S&P 500's gain of 0.59%.
The investment community will be closely monitoring the performance of Roku in its forthcoming earnings report. The company is expected to report EPS of $0.28, up 216.67% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.35 billion, showing a 12.62% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.33 per share and a revenue of $4.69 billion, signifying shifts of +137.08% and 0%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Roku. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.72% higher. Roku presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Roku currently has a Forward P/E ratio of 94.95. This denotes a premium relative to the industry average Forward P/E of 11.96.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 32% of over 250 industries.
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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