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Roku (ROKU) Stock Sinks As Market Gains: What You Should Know

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Roku (ROKU - Free Report) closed the most recent trading day at $35.17, moving -1.79% from the previous trading session. This change lagged the S&P 500's daily gain of 0.54%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.95%.

Heading into today, shares of the video streaming company had lost 15.62% over the past month, lagging the Consumer Discretionary sector's loss of 4.65% and the S&P 500's loss of 4.97% in that time.

Investors will be hoping for strength from ROKU as it approaches its next earnings release, which is expected to be February 20, 2019. In that report, analysts expect ROKU to post earnings of $0.01 per share. This would mark a year-over-year decline of 83.33%. Meanwhile, our latest consensus estimate is calling for revenue of $261.17 million, up 38.73% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.13 per share and revenue of $728.04 million. These totals would mark changes of +94.2% and +41.98%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for ROKU. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ROKU is holding a Zacks Rank of #3 (Hold) right now.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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