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Roku (ROKU) Outperforms Broader Market: What You Need to Know
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In the latest trading session, Roku (ROKU - Free Report) closed at $99.60, marking a +1.62% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 0.44%.
Heading into today, shares of the video streaming company had gained 0.48% over the past month, outpacing the Consumer Discretionary sector's loss of 1.13% and lagging the S&P 500's gain of 2.72%.
Market participants will be closely following the financial results of Roku in its upcoming release. On that day, Roku is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 216.67%. In the meantime, our current consensus estimate forecasts the revenue to be $1.21 billion, indicating a 13.46% 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 $0.12 per share and revenue of $4.66 billion. These totals would mark changes of +113.48% and +13.24%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Roku. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Roku is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Roku's current valuation metrics, including its Forward P/E ratio of 837.69. Its industry sports an average Forward P/E of 30.43, so one might conclude that Roku is trading at a premium comparatively.
Investors should also note that ROKU has a PEG ratio of 13.72 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 2.01 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 25% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Roku (ROKU) Outperforms Broader Market: What You Need to Know
In the latest trading session, Roku (ROKU - Free Report) closed at $99.60, marking a +1.62% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 0.44%.
Heading into today, shares of the video streaming company had gained 0.48% over the past month, outpacing the Consumer Discretionary sector's loss of 1.13% and lagging the S&P 500's gain of 2.72%.
Market participants will be closely following the financial results of Roku in its upcoming release. On that day, Roku is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 216.67%. In the meantime, our current consensus estimate forecasts the revenue to be $1.21 billion, indicating a 13.46% 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 $0.12 per share and revenue of $4.66 billion. These totals would mark changes of +113.48% and +13.24%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Roku. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Roku is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Roku's current valuation metrics, including its Forward P/E ratio of 837.69. Its industry sports an average Forward P/E of 30.43, so one might conclude that Roku is trading at a premium comparatively.
Investors should also note that ROKU has a PEG ratio of 13.72 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 2.01 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 25% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.