Back to top

Image: Bigstock

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

Read MoreHide Full Article

Roku (ROKU - Free Report) closed at $43.69 in the latest trading session, marking a +0.92% move from the prior day. This move outpaced the S&P 500's daily gain of 0.85%. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 1.29%.

Prior to today's trading, shares of the video streaming company had gained 42.12% over the past month. This has outpaced the Consumer Discretionary sector's gain of 14.05% and the S&P 500's gain of 12.44% in that time.

Wall Street will be looking for positivity from ROKU as it approaches its next earnings report date. This is expected to be February 20, 2019. On that day, ROKU is projected to report earnings of $0.01 per share, which would represent a year-over-year decline of 83.33%. Our most recent consensus estimate is calling for quarterly revenue of $261.52 million, up 38.91% from the year-ago period.

Investors should also note any recent changes to analyst estimates for ROKU. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 15.92% lower within the past month. ROKU is currently a Zacks Rank #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Roku, Inc. (ROKU) - free report >>

Published in