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Roku shares have been hot over the past month, up nearly 15%.
Strong quarterly results have helped shift sentiment.
Big growth is expected for its current and next fiscal year.
Roku (ROKU - Free Report) helped pioneer streaming. Roku-made TVs, Roku TV models, Roku streaming players, and TV-related audio devices are available worldwide through direct retail sales and/or licensing arrangements with TV OEM brands. The company enables content publishers to build and monetize large audiences, and provides advertisers with unique capabilities to engage consumers.
The stock sports the highly coveted Zacks Rank #1 (Strong Buy), with EPS expectations moving bullishly across the board.
Image Source: Zacks Investment Research
Roku Posts Strong Results
Roku posted a double-beat concerning our headline expectations in its latest quarterly release, with adjusted EPS of $0.53 much improved from the -$0.24 per share loss in the same period last year. Sales of $1.4 billion grew 16% YoY, reflecting an acceleration relative to the last few periods.
The above-mentioned release also wrapped up its broader FY25, with total streaming hours of 145.6 billion throughout the year growing 15% YoY alongside a 15% improvement in gross profit. The company also reported record free cash flow on a trailing twelve-month basis, adding to the positivity.
Image Source: Zacks Investment Research
The positive release helped move shares higher and shift sentiment post-earnings, up 15% just over the last month. As shown below, EPS revisions have been highly positive not just over recent months but over the past year as well, with estimates for FY26 and FY27 up 240% and 100%, respectively, since the end of last March.
Image Source: Zacks Investment Research
The growth outlook remains notably bullish, as shown below. EPS is expected to grow 255% in its current FY26 and an additional 55% in FY27, whereas sales are expected to see growth rates of 16% and 13% across FY26 and FY27, respectively. The stock sports a Style Score of ‘B’ for Growth.
Image Source: Zacks Investment Research
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Roku (ROKU - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
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Bull of the Day: Roku (ROKU)
Key Takeaways
Roku (ROKU - Free Report) helped pioneer streaming. Roku-made TVs, Roku TV models, Roku streaming players, and TV-related audio devices are available worldwide through direct retail sales and/or licensing arrangements with TV OEM brands. The company enables content publishers to build and monetize large audiences, and provides advertisers with unique capabilities to engage consumers.
The stock sports the highly coveted Zacks Rank #1 (Strong Buy), with EPS expectations moving bullishly across the board.
Image Source: Zacks Investment Research
Roku Posts Strong Results
Roku posted a double-beat concerning our headline expectations in its latest quarterly release, with adjusted EPS of $0.53 much improved from the -$0.24 per share loss in the same period last year. Sales of $1.4 billion grew 16% YoY, reflecting an acceleration relative to the last few periods.
The above-mentioned release also wrapped up its broader FY25, with total streaming hours of 145.6 billion throughout the year growing 15% YoY alongside a 15% improvement in gross profit. The company also reported record free cash flow on a trailing twelve-month basis, adding to the positivity.
Image Source: Zacks Investment Research
The positive release helped move shares higher and shift sentiment post-earnings, up 15% just over the last month. As shown below, EPS revisions have been highly positive not just over recent months but over the past year as well, with estimates for FY26 and FY27 up 240% and 100%, respectively, since the end of last March.
Image Source: Zacks Investment Research
The growth outlook remains notably bullish, as shown below. EPS is expected to grow 255% in its current FY26 and an additional 55% in FY27, whereas sales are expected to see growth rates of 16% and 13% across FY26 and FY27, respectively. The stock sports a Style Score of ‘B’ for Growth.
Image Source: Zacks Investment Research
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Roku (ROKU - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).