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Roku (ROKU) Ascends While Market Falls: Some Facts to Note

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The latest trading session saw Roku (ROKU - Free Report) ending at $54.40, denoting a +1.36% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.18%.

Coming into today, shares of the video streaming company had lost 4.5% in the past month. In that same time, the Consumer Discretionary sector gained 0.56%, while the S&P 500 gained 3.15%.

The investment community will be closely monitoring the performance of Roku in its forthcoming earnings report. In that report, analysts expect Roku to post earnings of -$0.45 per share. This would mark year-over-year growth of 40.79%. In the meantime, our current consensus estimate forecasts the revenue to be $935.29 million, indicating a 10.4% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.94 per share and revenue of $3.92 billion. These totals would mark changes of +61.28% and +12.46%, respectively, from last year.

Investors should also note any recent changes to analyst estimates 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Roku is carrying a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 41% of all 250+ industries.

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

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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