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Why Roku (ROKU) Outpaced the Stock Market Today

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The most recent trading session ended with Roku (ROKU - Free Report) standing at $67.15, reflecting a +1.63% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 1.06% for the day. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 1.2%.

The the stock of video streaming company has fallen by 13.36% in the past month, lagging the Consumer Discretionary sector's loss of 3.55% and the S&P 500's loss of 3%.

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 -$1.91, down 117.05% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $855.35 million, showing a 12.34% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of -$5.32 per share and a revenue of $3.39 billion, demonstrating changes of -46.96% and +8.34%, respectively, from the preceding year.

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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.76% downward. At present, Roku boasts a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 216, this industry ranks in the bottom 15% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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