We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Roku (ROKU) Falls More Steeply Than Broader Market: What Investors Need to Know
Read MoreHide Full Article
Roku (ROKU - Free Report) closed the most recent trading day at $101.83, moving -2.87% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.67%.
Heading into today, shares of the video streaming company had gained 5.48% over the past month, outpacing the Consumer Discretionary sector's loss of 2.35% and the S&P 500's gain of 4.06%.
Market participants will be closely following the financial results of Roku in its upcoming release. The company's earnings per share (EPS) are projected to be $0.07, reflecting a 216.67% increase from the same quarter last year. 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.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.12 per share and a revenue of $4.66 billion, signifying shifts of +113.48% and +13.24%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Roku. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Roku presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Roku is at present trading with a Forward P/E ratio of 896.07. This indicates a premium in contrast to its industry's Forward P/E of 31.59.
Also, we should mention that ROKU has a PEG ratio of 14.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Broadcast Radio and Television industry currently had an average PEG ratio of 1.92 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ROKU in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Roku (ROKU) Falls More Steeply Than Broader Market: What Investors Need to Know
Roku (ROKU - Free Report) closed the most recent trading day at $101.83, moving -2.87% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.67%.
Heading into today, shares of the video streaming company had gained 5.48% over the past month, outpacing the Consumer Discretionary sector's loss of 2.35% and the S&P 500's gain of 4.06%.
Market participants will be closely following the financial results of Roku in its upcoming release. The company's earnings per share (EPS) are projected to be $0.07, reflecting a 216.67% increase from the same quarter last year. 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.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.12 per share and a revenue of $4.66 billion, signifying shifts of +113.48% and +13.24%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Roku. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Roku presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Roku is at present trading with a Forward P/E ratio of 896.07. This indicates a premium in contrast to its industry's Forward P/E of 31.59.
Also, we should mention that ROKU has a PEG ratio of 14.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Broadcast Radio and Television industry currently had an average PEG ratio of 1.92 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ROKU in the coming trading sessions, be sure to utilize Zacks.com.