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

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In the latest trading session, Roku (ROKU - Free Report) closed at $134.07, marking a +1.24% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.2%.

Prior to today's trading, shares of the video streaming company had lost 9.03% over the past month. This has lagged the Consumer Discretionary sector's gain of 1.05% and the S&P 500's gain of 3.25% in that time.

ROKU will be looking to display strength as it nears its next earnings release, which is expected to be February 13, 2020. The company is expected to report EPS of -$0.14, down 380% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $392.43 million, up 42.32% from the year-ago period.

Investors might also notice recent changes to analyst estimates for ROKU. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 108, putting it in the top 43% 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.


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