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Roku (ROKU) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Roku (ROKU - Free Report) closed at $76.26, marking a -1.98% move from the previous day. This change lagged the S&P 500's daily loss of 1.22%. Elsewhere, the Dow lost 0.83%, while the tech-heavy Nasdaq lost 1.56%.

Prior to today's trading, shares of the video streaming company had gained 0.74% over the past month. This has outpaced the Consumer Discretionary sector's loss of 3.96% and the S&P 500's gain of 0.54% in that time.

Investors will be hoping for strength from Roku as it approaches its next earnings release. In that report, analysts expect Roku to post earnings of -$1.65 per share. This would mark 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.

Any recent changes to analyst estimates for Roku should also be noted by investors. Recent revisions tend to reflect the latest 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 12.81% lower within the past month. 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 industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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