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Roku (ROKU) Stock Declines While Market Improves: Some Information for Investors

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The most recent trading session ended with Roku (ROKU - Free Report) standing at $63.37, reflecting a -0.97% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.63%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.82%.

The video streaming company's shares have seen a decrease of 11.13% over the last month, not keeping up with the Consumer Discretionary sector's loss of 1.33% and the S&P 500's gain of 1.76%.

Investors will be eagerly watching for the performance of Roku in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.68, indicating a 50.72% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $850.98 million, showing a 14.84% escalation compared to the year-ago quarter.

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 +10.41%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Roku. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 7.28% upward. Right now, Roku possesses a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 190, finds itself in the bottom 25% echelons 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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