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

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Roku (ROKU - Free Report) closed the most recent trading day at $420.28, moving +0.3% from the previous trading session. This change outpaced the S&P 500's 0.86% loss on the day.

Coming into today, shares of the video streaming company had gained 23.37% in the past month. In that same time, the Consumer Discretionary sector lost 1.44%, while the S&P 500 gained 3.22%.

Investors will be hoping for strength from ROKU as it approaches its next earnings release. The company is expected to report EPS of $0.13, up 137.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $617.2 million, up 73.34% from the prior-year quarter.

ROKU's full-year Zacks Consensus Estimates are calling for earnings of $0.45 per share and revenue of $2.74 billion. These results would represent year-over-year changes of +421.43% and +54.08%, respectively.

It is also important to note the recent changes to analyst estimates for ROKU. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 20.02% higher. ROKU is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, ROKU is holding a Forward P/E ratio of 933.44. For comparison, its industry has an average Forward P/E of 14.13, which means ROKU is trading at a premium to the group.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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