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

Zacks Equity Research

In the latest trading session, Roku (ROKU) closed at $105.76, marking a +0.6% move from the previous day. This change outpaced the S&P 500's 0.26% loss on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.24%.

Prior to today's trading, shares of the video streaming company had gained 15.06% over the past month. This has outpaced the Consumer Discretionary sector's gain of 0.61% and the S&P 500's gain of 2.87% 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 August 7, 2019. Meanwhile, our latest consensus estimate is calling for revenue of $224.75 million, up 43.32% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.58 per share and revenue of $1.04 billion, which would represent changes of -625% and +39.72%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ROKU. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ROKU is holding a Zacks Rank of #2 (Buy) right now.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% 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.

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


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