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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 $77.80, marking a -0.82% move from the previous day. This change lagged the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.96%, and the tech-heavy Nasdaq gained 0.81%.

Coming into today, shares of the video streaming company had lost 2.69% in the past month. In that same time, the Consumer Discretionary sector lost 5.11%, while the S&P 500 gained 0.19%.

Wall Street will be looking for positivity from Roku as it approaches its next earnings report date. On that day, Roku is projected to report earnings of -$1.65 per share, which would represent a year-over-year decline of 87.5%. Meanwhile, our latest consensus estimate is calling for revenue of $853.94 million, up 12.16% from the prior-year quarter.

ROKU's full-year Zacks Consensus Estimates are calling for earnings of -$5.14 per share and revenue of $3.38 billion. These results would represent year-over-year changes of -41.99% and +8.09%, respectively.

It is also important to note the recent changes to analyst estimates for Roku. These recent revisions tend to reflect the evolving nature of short-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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 12.81% lower. Roku is currently sporting a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% 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.

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

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