In the latest trading session, Roku (ROKU) closed at $132.50, marking a -0.24% move from the previous day. This change lagged the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.3%.
Heading into today, shares of the video streaming company had lost 11.76% over the past month, lagging the Consumer Discretionary sector's loss of 3.39% and the S&P 500's loss of 0.25% in that time.
Investors will be hoping for strength from ROKU as it approaches its next earnings release. On that day, ROKU is projected to report earnings of -$0.28 per share, which would represent a year-over-year decline of 211.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $258.07 million, up 48.84% from the year-ago period.
ROKU's full-year Zacks Consensus Estimates are calling for earnings of -$0.50 per share and revenue of $1.08 billion. These results would represent year-over-year changes of -525% and +45.76%, respectively.
Investors should also note any recent changes to analyst estimates for ROKU. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. ROKU is currently a Zacks Rank #1 (Strong Buy).
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow ROKU in the coming trading sessions, be sure to utilize Zacks.com.
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