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

Zacks Equity Research
·2 min read

In the latest trading session, Roku (ROKU) closed at $403.13, marking a +1% move from the previous day. This change outpaced the S&P 500's 0.66% loss on the day. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 1.25%.

Heading into today, shares of the video streaming company had gained 23.96% over the past month, outpacing the Consumer Discretionary sector's gain of 4.05% and the S&P 500's gain of 3.42% in that time.

Investors will be hoping for strength from ROKU as it approaches its next earnings release. The company is expected to report EPS of -$0.08, up 38.46% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $614.35 million, up 49.39% from the prior-year quarter.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 7.11% higher. ROKU is currently sporting a Zacks Rank of #2 (Buy).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 25% 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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