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

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Roku (ROKU - Free Report) closed at $428.50 in the latest trading session, marking a -1.3% move from the prior day. This move lagged the S&P 500's daily gain of 1.39%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 1.97%.

Heading into today, shares of the video streaming company had gained 22.39% over the past month, outpacing the Consumer Discretionary sector's gain of 0.42% and the S&P 500's gain of 2.58% in that time.

Wall Street will be looking for positivity from ROKU as it approaches its next earnings report date. On that day, ROKU is projected to report earnings of -$0.08 per share, which would represent year-over-year growth of 38.46%. Our most recent consensus estimate is calling for quarterly revenue of $614.35 million, up 49.39% from the year-ago period.

It is also important to note the recent changes to analyst estimates for ROKU. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 14.31% higher within the past month. ROKU is currently a Zacks Rank #2 (Buy).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 129, which puts it in the top 50% 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.

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


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