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

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In the latest trading session, Roku (ROKU - Free Report) closed at $468.35, marking a +1.95% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.02%.

Heading into today, shares of the video streaming company had gained 4.29% over the past month, outpacing the Consumer Discretionary sector's loss of 5.03% and the S&P 500's gain of 2.91% in that time.

ROKU will be looking to display strength as it nears its next earnings release, which is expected to be August 4, 2021. 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 $0.45 per share and revenue of $2.74 billion, which would represent changes of +421.43% 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 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. 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 remained stagnant. ROKU is currently a Zacks Rank #3 (Hold).

Digging into valuation, ROKU currently has a Forward P/E ratio of 1023.35. Its industry sports an average Forward P/E of 17.57, so we one might conclude that ROKU is trading at a premium comparatively.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% 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.

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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