Roku (ROKU) Stock Sinks As Market Gains: What You Should Know
Roku (ROKU) closed the most recent trading day at $152.17, moving -0.78% from the previous trading session. This change lagged the S&P 500's 0.58% gain on the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.24%.
Prior to today's trading, shares of the video streaming company had gained 19.92% over the past month. This has outpaced the Consumer Discretionary sector's gain of 5.61% and the S&P 500's gain of 5.34% in that time.
ROKU will be looking to display strength as it nears its next earnings release, which is expected to be August 5, 2020. On that day, ROKU is projected to report earnings of -$0.56 per share, which would represent a year-over-year decline of 600%. Our most recent consensus estimate is calling for quarterly revenue of $302.17 million, up 20.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.78 per share and revenue of $1.48 billion, which would represent changes of -242.31% and +31.47%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ROKU. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. ROKU is currently sporting a Zacks Rank of #4 (Sell).
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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