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Roku (ROKU) Gains But Lags Market: What You Should Know

·2 min read

Roku (ROKU) closed at $72.01 in the latest trading session, marking a +0.64% move from the prior day. This move lagged the S&P 500's daily gain of 1.06%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.18%.

Prior to today's trading, shares of the video streaming company had lost 14.63% over the past month. This has lagged the Consumer Discretionary sector's loss of 1.14% and the S&P 500's loss of 1.14% in that time.

Roku will be looking to display strength as it nears its next earnings release. In that report, analysts expect Roku to post earnings of -$1.37 per share. This would mark a year-over-year decline of 385.42%. Meanwhile, our latest consensus estimate is calling for revenue of $698.79 million, up 2.77% from the prior-year quarter.

ROKU's full-year Zacks Consensus Estimates are calling for earnings of -$3.56 per share and revenue of $3.11 billion. These results would represent year-over-year changes of -308.19% and +12.6%, 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. 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. Within the past 30 days, our consensus EPS projection has moved 13.06% lower. Roku currently has a Zacks Rank of #4 (Sell).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 219, which puts it in the bottom 14% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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