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

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Zacks Equity Research
·2 min read
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Roku (ROKU) closed at $434.63 in the latest trading session, marking a -1.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 0.95%.

Coming into today, shares of the video streaming company had gained 15.98% in the past month. In that same time, the Consumer Discretionary sector gained 4.38%, while the S&P 500 gained 4.41%.

ROKU will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2021. On that day, ROKU is projected to report earnings of -$0.08 per share, which would represent year-over-year growth of 38.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $615.84 million, up 49.75% from the year-ago period.

It is also important to note the recent changes to analyst estimates for ROKU. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 7.57% higher. ROKU currently has a Zacks Rank of #2 (Buy).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% 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.

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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Zacks Investment Research