In the latest trading session, Roku (ROKU) closed at $107.55, marking a -2.68% move from the previous day. This change lagged the S&P 500's daily loss of 0.53%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 1%.
The stock of video streaming company has fallen by 0.52% in the past month, lagging the Consumer Discretionary sector's gain of 0.09% and the S&P 500's gain of 2.06%.
The investment community will be paying close attention to the earnings performance of Roku in its upcoming release. In that report, analysts expect Roku to post earnings of $0.28 per share. This would mark year-over-year growth of 216.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.35 billion, up 12.62% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.33 per share and revenue of $4.69 billion, which would represent changes of +137.08% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Roku. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 6.11% higher within the past month. Roku presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Roku currently has a Forward P/E ratio of 89.52. This represents a premium compared to its industry average Forward P/E of 11.77.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 58, placing it within the top 24% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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