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Is Roku (ROKU) Stock Outpacing Its Consumer Discretionary Peers This Year?

Zacks Equity Research

Investors focused on the Consumer Discretionary space have likely heard of Roku (ROKU), but is the stock performing well in comparison to the rest of its sector peers? Let's take a closer look at the stock's year-to-date performance to find out.

Roku is a member of our Consumer Discretionary group, which includes 250 different companies and currently sits at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. ROKU is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ROKU's full-year earnings has moved 19.58% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, ROKU has gained about 241.19% so far this year. In comparison, Consumer Discretionary companies have returned an average of 24.97%. This means that Roku is outperforming the sector as a whole this year.

Looking more specifically, ROKU belongs to the Broadcast Radio and Television industry, which includes 25 individual stocks and currently sits at #171 in the Zacks Industry Rank. On average, this group has gained an average of 31.22% so far this year, meaning that ROKU is performing better in terms of year-to-date returns.

ROKU will likely be looking to continue its solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to the company.


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