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Roku (ROKU) Suffers a Larger Drop Than the General Market: Key Insights

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Roku (ROKU - Free Report) closed the most recent trading day at $70.04, moving -0.19% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.12%.

Shares of the video streaming company have depreciated by 18.59% over the course of the past month, underperforming the Consumer Discretionary sector's loss of 6.99% and the S&P 500's loss of 5.53%.

The investment community will be paying close attention to the earnings performance of Roku in its upcoming release. The company is expected to report EPS of -$1.75, down 98.86% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $854.64 million, indicating a 12.25% upward movement from the same quarter last year.

ROKU's full-year Zacks Consensus Estimates are calling for earnings of -$5.16 per share and revenue of $3.38 billion. These results would represent year-over-year changes of -42.54% and +8.13%, respectively.

Any recent changes to analyst estimates for Roku should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 14.92% 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. Currently, this industry holds a Zacks Industry Rank of 185, positioning it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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