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

Zacks Equity Research

Roku (ROKU) closed the most recent trading day at $132.50, moving -0.69% from the previous trading session. This change lagged the S&P 500's 0.19% gain on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.08%.

Heading into today, shares of the video streaming company had lost 1.37% over the past month, lagging the Consumer Discretionary sector's gain of 4.39% and the S&P 500's gain of 3.72% 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 -$0.14, down 380% 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.

Investors might also notice recent changes to analyst estimates for ROKU. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ROKU is currently sporting a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 43% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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