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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 $346.98, moving -0.24% from the previous trading session. This move lagged the S&P 500's daily gain of 0.2%.

Heading into today, shares of the video streaming company had gained 12.34% over the past month, outpacing the Consumer Discretionary sector's gain of 0.11% and the S&P 500's gain of 1.06% in that time.

Wall Street will be looking for positivity from ROKU as it approaches its next earnings report date. The company is expected to report EPS of $0.13, up 137.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $617.2 million, up 73.34% from the year-ago period.

ROKU's full-year Zacks Consensus Estimates are calling for earnings of $0.37 per share and revenue of $2.74 billion. These results would represent year-over-year changes of +364.29% and +54.08%, respectively.

It is also important to note the recent changes to analyst estimates for ROKU. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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 remained stagnant within the past month. ROKU is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, ROKU is holding a Forward P/E ratio of 929.97. This valuation marks a premium compared to its industry's average Forward P/E of 13.98.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 123, putting it in the top 49% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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