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Roku (ROKU) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest close session, Roku (ROKU - Free Report) was down 3.3% at $95.33. This move lagged the S&P 500's daily loss of 0.63%. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Prior to today's trading, shares of the video streaming company had gained 0.24% outpaced the Consumer Discretionary sector's loss of 3.5% and lagged the S&P 500's gain of 0.92%.
The investment community will be closely monitoring the performance of Roku in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.07, reflecting a 216.67% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.21 billion, reflecting a 13.46% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.14 per share and a revenue of $4.66 billion, indicating changes of +115.73% and +13.24%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Roku. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
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, the Zacks Consensus EPS estimate has shifted 18.71% upward. At present, Roku boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Roku is presently being traded at a Forward P/E ratio of 709.78. This signifies a premium in comparison to the average Forward P/E of 30 for its industry.
We can also see that ROKU currently has a PEG ratio of 11.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Broadcast Radio and Television industry held an average PEG ratio of 1.86.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 35% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Roku (ROKU) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest close session, Roku (ROKU - Free Report) was down 3.3% at $95.33. This move lagged the S&P 500's daily loss of 0.63%. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Prior to today's trading, shares of the video streaming company had gained 0.24% outpaced the Consumer Discretionary sector's loss of 3.5% and lagged the S&P 500's gain of 0.92%.
The investment community will be closely monitoring the performance of Roku in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.07, reflecting a 216.67% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.21 billion, reflecting a 13.46% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.14 per share and a revenue of $4.66 billion, indicating changes of +115.73% and +13.24%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Roku. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
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, the Zacks Consensus EPS estimate has shifted 18.71% upward. At present, Roku boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Roku is presently being traded at a Forward P/E ratio of 709.78. This signifies a premium in comparison to the average Forward P/E of 30 for its industry.
We can also see that ROKU currently has a PEG ratio of 11.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Broadcast Radio and Television industry held an average PEG ratio of 1.86.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 35% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.