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Roku (ROKU) Exceeds Market Returns: Some Facts to Consider

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Roku (ROKU - Free Report) closed at $94.49 in the latest trading session, marking a +1.08% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.82%. On the other hand, the Dow registered a gain of 0.41%, and the technology-centric Nasdaq increased by 0.95%.

Shares of the video streaming company have appreciated by 2.05% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 3.13% and the S&P 500's gain of 5.59%.

Market participants will be closely following the financial results of Roku in its upcoming release. The company plans to announce its earnings on February 15, 2024. In that report, analysts expect Roku to post earnings of -$0.65 per share. This would mark year-over-year growth of 61.76%. Meanwhile, our latest consensus estimate is calling for revenue of $959.66 million, up 10.68% from the prior-year quarter.

Investors should also take note of any recent adjustments to analyst estimates for Roku. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.43% higher. Roku is holding a Zacks Rank of #2 (Buy) right now.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ROKU in the coming trading sessions, be sure to utilize Zacks.com.


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