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Roku (ROKU) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Roku (ROKU - Free Report) ended the recent trading session at $135.20, demonstrating a -2.08% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.37% for the day. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw a decrease of 1.33%.
Coming into today, shares of the video streaming company had gained 9.97% in the past month. In that same time, the Consumer Discretionary sector gained 1.15%, while the S&P 500 gained 2.02%.
Analysts and investors alike will be keeping a close eye on the performance of Roku in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.61, signifying a 771.43% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.3 billion, indicating a 16.93% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.41 per share and revenue of $5.55 billion. These totals would mark changes of +308.47% and +17.19%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Roku. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. Roku currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Roku is currently being traded at a Forward P/E ratio of 57.27. Its industry sports an average Forward P/E of 12.22, so one might conclude that Roku is trading at a premium comparatively.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 35% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Roku (ROKU) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Roku (ROKU - Free Report) ended the recent trading session at $135.20, demonstrating a -2.08% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.37% for the day. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw a decrease of 1.33%.
Coming into today, shares of the video streaming company had gained 9.97% in the past month. In that same time, the Consumer Discretionary sector gained 1.15%, while the S&P 500 gained 2.02%.
Analysts and investors alike will be keeping a close eye on the performance of Roku in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.61, signifying a 771.43% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.3 billion, indicating a 16.93% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.41 per share and revenue of $5.55 billion. These totals would mark changes of +308.47% and +17.19%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Roku. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. Roku currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Roku is currently being traded at a Forward P/E ratio of 57.27. Its industry sports an average Forward P/E of 12.22, so one might conclude that Roku is trading at a premium comparatively.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 35% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.