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

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Roku (ROKU - Free Report) closed at $157.73 in the latest trading session, marking a +1.46% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.27%. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 1.87%.

Heading into today, shares of the video streaming company had gained 3.66% over the past month, outpacing the Consumer Discretionary sector's gain of 1.87% and the S&P 500's gain of 0.37% in that time.

ROKU will be looking to display strength as it nears its next earnings release. In that report, analysts expect ROKU to post earnings of -$0.42 per share. This would mark a year-over-year decline of 90.91%. Meanwhile, our latest consensus estimate is calling for revenue of $354.45 million, up 35.84% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.49 per share and revenue of $1.56 billion, which would represent changes of -186.54% and +38.03%, respectively, from the prior year.

Any recent changes to analyst estimates for ROKU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 7.13% higher. 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 116, putting it in the top 46% 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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