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

Zacks Equity Research

In the latest trading session, Roku (ROKU) closed at $126.16, marking a +0.17% move from the previous day. This change lagged the S&P 500's 0.33% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.67%.

Prior to today's trading, shares of the video streaming company had lost 6.46% over the past month. This has lagged the Consumer Discretionary sector's loss of 0.38% and the S&P 500's gain of 3.24% in that time.

Wall Street will be looking for positivity from ROKU as it approaches its next earnings report date. This is expected to be February 13, 2020. On that day, ROKU is projected to report earnings of -$0.14 per share, which would represent a year-over-year decline of 380%. Our most recent consensus estimate is calling for quarterly revenue of $392.43 million, up 42.32% from the year-ago period.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. ROKU is currently a Zacks Rank #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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