Back to top

Roku (ROKU) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Roku (ROKU - Free Report) closed the most recent trading day at $56.68, moving +0.14% from the previous trading session. This move lagged the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.42%, and the tech-heavy Nasdaq gained 0.03%.

Heading into today, shares of the video streaming company had lost 12.88% over the past month, lagging the Consumer Discretionary sector's gain of 4.34% and the S&P 500's gain of 2.89% in that time.

Investors will be hoping for strength from ROKU as it approaches its next earnings release, which is expected to be May 8, 2019. In that report, analysts expect ROKU to post earnings of -$0.24 per share. This would mark a year-over-year decline of 242.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $189.06 million, up 38.43% from the year-ago period.

ROKU's full-year Zacks Consensus Estimates are calling for earnings of -$0.72 per share and revenue of $1.02 billion. These results would represent year-over-year changes of -800% and +37.22%, respectively.

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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 remained stagnant. ROKU currently has a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.




In-Depth Zacks Research for the Tickers Above


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


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

More from Zacks Tale of the Tape

You May Like

Published in