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Roku (ROKU) Stock Sinks As Market Gains: What You Should Know

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Roku (ROKU - Free Report) closed the most recent trading day at $40.25, moving -1.49% from the previous trading session. This change lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.

Coming into today, shares of the video streaming company had lost 24.46% in the past month. In that same time, the Consumer Discretionary sector lost 5.94%, while the S&P 500 lost 4.37%.

ROKU will be looking to display strength as it nears its next earnings release, which is expected to be February 20, 2019. The company is expected to report EPS of $0.01, down 83.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $261.17 million, up 38.73% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.13 per share and revenue of $728.04 million, which would represent changes of +94.2% and +41.98%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ROKU. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 9.2% higher within the past month. ROKU currently has 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 61, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.




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