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Roku (ROKU) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest trading session, Roku (ROKU - Free Report) closed at $62.67, marking a -0.19% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.51%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.58%.

The video streaming company's stock has dropped by 32.83% in the past month, falling short of the Consumer Discretionary sector's gain of 1.3% and the S&P 500's gain of 2.94%.

The investment community will be closely monitoring the performance of Roku in its forthcoming earnings report. The company is predicted to post an EPS of -$0.68, indicating a 50.72% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $850.98 million, up 14.84% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of -$2.16 per share and a revenue of $3.85 billion, demonstrating changes of +56.89% and +10.46%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Roku. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 7.28% rise in the Zacks Consensus EPS estimate. Currently, Roku is carrying 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 205, this industry ranks in the bottom 19% of all industries, numbering over 250.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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