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Is Roku (ROKU) Stock Outpacing Its Consumer Discretionary Peers This Year?

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For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Roku (ROKU - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of ROKU and the rest of the Consumer Discretionary group's stocks.

Roku is a member of the Consumer Discretionary sector. This group includes 244 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. ROKU is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ROKU's full-year earnings has moved 15.18% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, ROKU has moved about 193.67% on a year-to-date basis. Meanwhile, the Consumer Discretionary sector has returned an average of 16.58% on a year-to-date basis. As we can see, Roku is performing better than its sector in the calendar year.

To break things down more, ROKU belongs to the Broadcast Radio and Television industry, a group that includes 26 individual companies and currently sits at #102 in the Zacks Industry Rank. On average, stocks in this group have gained 22.88% this year, meaning that ROKU is performing better in terms of year-to-date returns.

Investors with an interest in Consumer Discretionary stocks should continue to track ROKU. The stock will be looking to continue its solid performance.


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