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

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In the latest trading session, Roku (ROKU - Free Report) closed at $128.50, marking a +0.56% move from the previous day. This move outpaced the S&P 500's daily loss of 0.57%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq added 0.03%.

ROKU will be looking to display strength as it nears its next earnings release. In that report, analysts expect ROKU to post earnings of -$0.53 per share. This would mark a year-over-year decline of 562.5%. Our most recent consensus estimate is calling for quarterly revenue of $304.36 million, up 21.69% from the year-ago period.

ROKU's full-year Zacks Consensus Estimates are calling for earnings of -$1.72 per share and revenue of $1.51 billion. These results would represent year-over-year changes of -230.77% and +33.34%, respectively.

Investors should also note any 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. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 4.15% lower. ROKU is currently sporting 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 137, which puts it in the bottom 47% 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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