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Roku (ROKU) Gains But Lags Market: What You Should Know

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Roku (ROKU - Free Report) closed the most recent trading day at $101.83, moving +1.13% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.14%. At the same time, the Dow added 1.82%, and the tech-heavy Nasdaq lost 0.01%.

Heading into today, shares of the video streaming company had lost 36.68% over the past month, lagging the Consumer Discretionary sector's loss of 12.05% and the S&P 500's loss of 5.01% in that time.

Wall Street will be looking for positivity from Roku as it approaches its next earnings report date. In that report, analysts expect Roku to post earnings of -$0.15 per share. This would mark a year-over-year decline of 127.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $719.87 million, up 25.37% from the year-ago period.

ROKU's full-year Zacks Consensus Estimates are calling for earnings of -$0.70 per share and revenue of $3.72 billion. These results would represent year-over-year changes of -140.94% and +34.7%, respectively.

Investors might also notice recent changes to analyst estimates for Roku. Recent revisions tend to reflect the latest 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. 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.

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. Within the past 30 days, our consensus EPS projection has moved 144.54% lower. Roku is holding a Zacks Rank of #3 (Hold) right now.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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