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Roku, Inc. (ROKU) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Roku (ROKU - Free Report) ? Shares have been on the move with the stock up 30.5% over the past month. The stock hit a new 52-week high of $104.96 in the previous session. Roku has gained 33.3% since the start of the year compared to the 8.7% move for the Zacks Consumer Discretionary sector and the 27.1% return for the Zacks Broadcast Radio and Television industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 13, 2025, Roku reported EPS of $-0.24 versus consensus estimate of $-0.44 while it beat the consensus revenue estimate by 4.48%.
For the current fiscal year, Roku is expected to post earnings of -$0.80 per share on $4.61 billion in revenues. This represents a 10.11% change in EPS on a 12.19% change in revenues. For the next fiscal year, the company is expected to earn $0.10 per share on $5.22 billion in revenues. This represents a year-over-year change of 112.38% and 13.07%, respectively.
Valuation Metrics
Roku may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Roku has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Roku currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Roku passes the test. Thus, it seems as though Roku shares could have a bit more room to run in the near term.
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Roku, Inc. (ROKU) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Roku (ROKU - Free Report) ? Shares have been on the move with the stock up 30.5% over the past month. The stock hit a new 52-week high of $104.96 in the previous session. Roku has gained 33.3% since the start of the year compared to the 8.7% move for the Zacks Consumer Discretionary sector and the 27.1% return for the Zacks Broadcast Radio and Television industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 13, 2025, Roku reported EPS of $-0.24 versus consensus estimate of $-0.44 while it beat the consensus revenue estimate by 4.48%.
For the current fiscal year, Roku is expected to post earnings of -$0.80 per share on $4.61 billion in revenues. This represents a 10.11% change in EPS on a 12.19% change in revenues. For the next fiscal year, the company is expected to earn $0.10 per share on $5.22 billion in revenues. This represents a year-over-year change of 112.38% and 13.07%, respectively.
Valuation Metrics
Roku may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Roku has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Roku currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Roku passes the test. Thus, it seems as though Roku shares could have a bit more room to run in the near term.