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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 $354.71, marking a +0.2% move from the previous day. This change outpaced the S&P 500's 0.21% loss on the day. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq added 0.51%.

Coming into today, shares of the video streaming company had gained 27.99% in the past month. In that same time, the Consumer Discretionary sector gained 7.67%, while the S&P 500 gained 4%.

Wall Street will be looking for positivity from ROKU as it approaches its next earnings report date. The company is expected to report EPS of -$0.09, up 30.77% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $605.92 million, up 47.34% from the year-ago period.

ROKU's full-year Zacks Consensus Estimates are calling for earnings of -$0.80 per share and revenue of $1.72 billion. These results would represent year-over-year changes of -53.85% and +52.12%, 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. 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. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 7.54% higher within the past month. ROKU currently has 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 100, putting it in the top 40% 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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