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Roku (ROKU) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Roku (ROKU) closed at $107.37, marking a -0.63% move from the previous day. This change lagged the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.06%, and the tech-heavy Nasdaq lost 0.06%.

Heading into today, shares of the video streaming company had lost 22.34% over the past month, lagging the Consumer Discretionary sector's gain of 2.07% and the S&P 500's gain of 3.23% in that time.

Investors will be hoping for strength from ROKU as it approaches its next earnings release. In that report, analysts expect ROKU to post earnings of -$0.28 per share. This would mark 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.

Any recent changes to analyst estimates for ROKU should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 10.71% higher within the past month. ROKU is currently sporting 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 216, putting it in the bottom 16% 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.

To follow ROKU in the coming trading sessions, be sure to utilize Zacks.com.


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