Roku (ROKU) closed at $96.18 in the latest trading session, marking a +1.03% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.54% for the day. On the other hand, the Dow registered a gain of 1.05%, and the technology-centric Nasdaq increased by 0.56%.
The stock of video streaming company has fallen by 12.44% in the past month, lagging the Consumer Discretionary sector's loss of 4.12% and the S&P 500's gain of 0.74%.
The investment community will be closely monitoring the performance of Roku in its forthcoming earnings report. The company is scheduled to release its earnings on February 12, 2026. On that day, Roku is projected to report earnings of $0.28 per share, which would represent year-over-year growth of 216.67%. In the meantime, our current consensus estimate forecasts the revenue to be $1.35 billion, indicating a 12.62% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $0.33 per share and a revenue of $4.69 billion, demonstrating changes of +137.08% and 0%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Roku. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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, there's been a 2.32% rise in the Zacks Consensus EPS estimate. At present, Roku boasts a Zacks Rank of #2 (Buy).
Digging into valuation, Roku currently has a Forward P/E ratio of 72.05. This valuation marks a premium compared to its industry average Forward P/E of 11.78.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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