Roku (ROKU) closed the most recent trading day at $87.89, moving +1.09% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.52%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 0.48%.
Shares of the video streaming company witnessed a gain of 19.98% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 5.55%, and the S&P 500's gain of 4.27%.
The investment community will be closely monitoring the performance of Roku in its forthcoming earnings report. The company is predicted to post an EPS of -$0.15, indicating a 37.5% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.07 billion, showing a 10.62% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.17 per share and a revenue of $4.55 billion, representing changes of +80.9% and +10.54%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Roku. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Roku is holding a Zacks Rank of #3 (Hold) right now.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 40% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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