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

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In the latest trading session, Roku (ROKU - Free Report) closed at $430.32, marking a -1.23% move from the previous day. This change lagged the S&P 500's 0.75% gain on the day.

Heading into today, shares of the video streaming company had gained 34.55% over the past month, outpacing the Consumer Discretionary sector's gain of 10.93% and the S&P 500's gain of 2.91% in that time.

Investors will be hoping for strength from ROKU as it approaches its next earnings release. On that day, ROKU is projected to report earnings of $0.13 per share, which would represent year-over-year growth of 137.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $617.2 million, up 73.34% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.37 per share and revenue of $2.74 billion, which would represent changes of +364.29% and +54.08%, respectively, from the prior year.

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.

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 remained stagnant within the past month. ROKU is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, ROKU is holding a Forward P/E ratio of 1164.89. This represents a premium compared to its industry's average Forward P/E of 14.78.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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