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Here's Why ROKU Stock is a Strong Buy Despite 8% Decline in a Year

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Roku (ROKU - Free Report) shares have lost 8% over the past year, underperforming the Zacks Consumer Discretionary sector’s appreciation of 11% and the Zacks Broadcast Radio and Television industry’s return of 50.4%.

Roku shares have also underperformed industry peers like fuboTV (FUBO - Free Report) , Fox (FOXA - Free Report) and Gaia (GAIA - Free Report) , which have returned 87.2%, 54.8% and 51.2%, respectively, over the same time frame.

However, ROKU’s prospects are strong backed by its expanding footprint, rich partner base and innovative product portfolio. The TV operating system provider has surpassed 90 million streaming households in the first week of January 2025, marking a significant milestone for the company.

ROKU has entered into a multi-year partnership with the Pro Volleyball Federation (PVF), marking Roku’s first women’s sports partnership. Roku will broadcast 20 PVF matches in 2025, increasing the league’s national coverage by 350%. The games will be free on The Roku Channel’s Roku Sports Channel.

Roku has also launched the Roku Data Cloud, enabling advertisers and partners to access and analyze its TV data for better planning and measurement. Connected via Roku’s clean room, it provides insights into viewership and ad performance, helping brands target audiences accurately, optimize campaigns and drive Roku’s ad revenue growth.

The Zacks Consensus Estimate for ROKU’s 2025 loss is currently pegged at 92 cents per share, reflecting improvement by a cent over the past 7 days. The estimate indicates year-over-year growth of 15.50%.

The consensus mark for ROKU’s 2025 revenues is pegged at $4.61 billion, indicating year-over-year growth of 13.69%.

ROKU beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 47.56%.

Roku, Inc. Price and Consensus

Roku, Inc. Price and Consensus

Roku, Inc. price-consensus-chart | Roku, Inc. Quote

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

ROKU: A Stock With Growth Potential

With its expanding user base, strategic partnerships and innovative offerings, ROKU is well positioned for long-term growth, despite recent stock decline.

ROKU currently flaunts a Zacks Rank #1 (Strong Buy) and Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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