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Is Roku (ROKU) Stock Outpacing Its Consumer Discretionary Peers This Year?

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For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Roku (ROKU - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.

Roku is one of 261 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. ROKU is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ROKU's full-year earnings has moved 192.28% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, ROKU has gained about 0.75% so far this year. In comparison, Consumer Discretionary companies have returned an average of -4.05%. This means that Roku is outperforming the sector as a whole this year.

Looking more specifically, ROKU belongs to the Broadcast Radio and Television industry, a group that includes 21 individual stocks and currently sits at #125 in the Zacks Industry Rank. On average, stocks in this group have gained 13.12% this year, meaning that ROKU is slightly underperforming its industry in terms of year-to-date returns.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to ROKU as it looks to continue its solid performance.


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