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Roku (ROKU) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Roku (ROKU) closed at $133.90, marking a +1.75% move from the previous day. This change outpaced the S&P 500's 0.3% gain on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.3%.

Heading into today, shares of the video streaming company had lost 3.29% over the past month, lagging the Consumer Discretionary sector's gain of 3.47% and the S&P 500's gain of 2.69% in that time.

ROKU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.28, down 660% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $392.43 million, up 42.32% from the year-ago period.

It is also important to note the recent changes to analyst estimates for ROKU. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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 has moved 1.55% lower. ROKU is holding a Zacks Rank of #3 (Hold) right now.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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