In the latest trading session, Roku (ROKU - Free Report) closed at $57.89, marking a +0.1% move from the previous day. This change outpaced the S&P 500's 0.63% loss on the day. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 1.04%.
Coming into today, shares of the video streaming company had lost 13.45% in the past month. In that same time, the Consumer Discretionary sector lost 5.5%, while the S&P 500 lost 6.28%.
Investors will be hoping for strength from ROKU as it approaches its next earnings release, which is expected to be November 7, 2018. In that report, analysts expect ROKU to post earnings of -$0.14 per share. This would mark year-over-year growth of 98.41%. Our most recent consensus estimate is calling for quarterly revenue of $170.91 million, up 36.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.15 per share and revenue of $722.45 million, which would represent changes of +93.3% and +40.89%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ROKU. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 9.38% higher within the past month. ROKU is currently sporting a Zacks Rank of #3 (Hold).
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 36% of all 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.