Roku (ROKU) Gains But Lags Market: What You Should Know

Roku (ROKU) closed at $373.66 in the latest trading session, marking a +0.26% move from the prior day. This move lagged the S&P 500's daily gain of 0.77%.

Prior to today's trading, shares of the video streaming company had gained 1.51% over the past month. This has outpaced the Consumer Discretionary sector's loss of 2.43% and lagged the S&P 500's gain of 7.34% in that time.

Investors will be hoping for strength from ROKU as it approaches its next earnings release. In that report, analysts expect ROKU to post earnings of -$0.18 per share. This would mark year-over-year growth of 60%. Our most recent consensus estimate is calling for quarterly revenue of $493.32 million, up 53.79% from the year-ago period.

ROKU's full-year Zacks Consensus Estimates are calling for earnings of -$0.37 per share and revenue of $2.54 billion. These results would represent year-over-year changes of -164.29% and +42.71%, respectively.

Any recent changes to analyst estimates for ROKU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 10.39% lower within the past month. ROKU is currently sporting a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 40% of all 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.

To follow ROKU in the coming trading sessions, be sure to utilize Zacks.com.


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