Roku (ROKU) ended the recent trading session at $104.26, demonstrating a +1.47% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.16%. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.18%.
Prior to today's trading, shares of the video streaming company had lost 6.89% lagged the Consumer Discretionary sector's loss of 3.58% and the S&P 500's loss of 0.42%.
The investment community will be paying close attention to the earnings performance of Roku in its upcoming release. It is anticipated that the company will report an EPS of $0.28, marking a 216.67% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.35 billion, indicating a 12.62% upward movement from the same quarter last year.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Roku. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.21% upward. Roku is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Roku's current valuation metrics, including its Forward P/E ratio of 83.24. For comparison, its industry has an average Forward P/E of 11.74, which means Roku is trading at a premium to the group.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 57, positioning it in the top 24% of all 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.
To follow ROKU in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Roku, Inc. (ROKU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
