91.02 -2.23 (-2.39%)
After hours: 7:59PM EDT
|Bid||91.40 x 1400|
|Ask||91.35 x 800|
|Day's Range||92.51 - 99.75|
|52 Week Range||26.30 - 108.32|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 6, 2019 - Aug 12, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||81.13|
Roku was among a handful of companies that made the case against tariffs in Washington, D.C., InvestorPlace's Will Healy wrote. Roku depends on China to manufacture its TVs, boxes and dongles. Roku's stock weakness likely "just began" after it peaked at $108 per share and then struggled to hold the $100 level, InvestorPlace said.
(Bloomberg) -- Roku Inc. shares fell on Tuesday, with the stock retreating further from record levels in what analysts said was a reaction to the company’s massive year-to-date advance.The stock dropped as much as 6.6% in what was on track to be its fourth straight decline, its longest losing streak since a six-day decline in April. Roku, a platform for video-streaming services, has lost about 12% over the four-day slump.Even with the recent losses, the stock is up nearly 250% from a December low, and it hit record levels last week.“There are plenty of examples of high-growth companies that are well positioned in popular sectors, where investors get ahead of themselves,” said Tom Forte, an analyst at D.A. Davidson who has a buy rating on the stock.“Roku is in a very favorable position, where it can exploit the large investments being made by participants in the video category -- not just Netflix, but also Amazon, Apple and Disney,” he told Bloomberg in a phone interview. “As video ad revenue gravitates to where the eyeballs are, to [over-the-top] services and away from legacy, linear television, I think it has the ability to grow into its valuation.”Roku’s stock has long been in a tug-of-war between its high levels of growth and a valuation that analysts often see as excessive. The stock can be extremely volatile, moving more than 20% following each of its past four quarterly results.Roku’s second-quarter results are estimated to come out on August 7, according to data compiled by Bloomberg. Currently, analysts expect it to report revenue growth of more than 40%, a pace that’s expected to continue in the subsequent quarter, and then stay above 30% for the next two quarters.This growth is seen as fueled by the company’s continued popularity with consumers at a time when streaming video has become a dominant part of the entertainment landscape. According to a Citi analysis of over-the-top services, the Roku Channel was the seventh most popular channel in May, up from ninth place in April.“The market clearly believes Roku has nearly unlimited growth potential,” wrote Wedbush analyst Michael Pachter in a report dated June 24.He added that while the company had built “an exceptional platform” and “has positioned itself as best in class for OTT advertising,” these factors were “fully priced in” the share price.Wedbush has a neutral rating on Roku, but on Monday boosted its price target to $105 from $65.To contact the reporter on this story: Ryan Vlastelica in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com – Roku slumped Tuesday on fears the streaming device company is set to face stiff competition from Amazon after the e-commerce giant launched new smart TVs.
Columbia Sportswear, SINA, Trade Desk, Roku and Square highlighted as Zacks Bull and Bear of the Day
Credit has to be given where it's due. Roku (NASDAQ:ROKU) has done the unthinkable, beating tech giants like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Apple (NASDAQ:AAPL) in the streaming set-top box race, and keeping Amazon.com (NASDAQ:AMZN) in check.Source: Shutterstock In that light, the incredible bullishness that's driven Roku stock price higher by more than 600% since its 2017 IPO isn't all that shocking. * 3 Monthly Dividend Stocks to Buy Today If you missed the boat thus far though, now's not the time to jump into Roku stock. While it feels like the 300% advance of Roku stock price just since the end of last year is never going to stop, the fact of the matter is, big swings are the norm for this name. And too many signs already suggest the Roku stock price has peaked, even if just temporarily.InvestorPlace - Stock Market News, Stock Advice & Trading Tips ROKU Is Poised for a PullbackMost of the time, stocks more or less reflect their underlying value. Certainly, adjustments for the uncertainty of the future have to be made, and the market's broad tide can work for or against a particular equity. By and large, though, stock prices usually make some sense.Roku stock is repeatedly proving an exception to that norm.That's not to suggest the incredible rally of Roku stock so far this year has been entirely unmerited. As previously noted, the company did the unlikely by dethroning the likes of Google and Apple in the streaming set-top box arena, and it continues to grow. Indeed, ROKU has only recently found the winning formula for selling ad space in conjunction with selling hardware.ROKU is a stock, however, that is still figuring out its limits. The weekly chart of Roku stock tells the tale. This year's big advance has carried Roku stock price up to a ceiling connecting the peaks from early 2018 and the latter portion of 2018 [the surge in late 2017 was post-IPO volatility, and shouldn't be factored in]. Along the way, a relatively new ceiling that connects recent higher highs with the streak of higher highs in March has taken shape. Notice that the buyers of Roku stock were unwilling to keep pushing beyond either boundary.That's not the only red flag at this point, however. Neither is the fact that the 300% gain of Roku stock price in less than six months has pushed the limit of what should be possible.Rather, the most concerning aspect of this chart is how buying volume has been sinking since mid-May, even though Roku stock price has continued to edge higher.Without more buyers, the rally can't last. In fact, a closer look at the chart reveals that the momentum of Roku stock has already petered out. Last week's and the prior week's closes were notably below the intraweek highs. ROKU is struggling to hold into its big gain. The Outlook of ROKUIt's not the end of the world. Roku stock will most assuredly bounce back. Comebacks have been the norm for ROKU. The trick is simply figuring out where the bottom might take shape or spotting it as it's happening. Easier said than done, particularly right now , since there's no chart history that tells us much about ROKU's future lows.One possible framework that might come into play is Fibonacci retracement lines. This obscure trading tool says the most likely landing points are around $77 and then $57.50.Wherever that low ends up being made though, odds are uncomfortably high that it will be too far below the stock's current value to simply "ride out" the decline. Again, this is a name that's still looking for its post-IPO groove. With all the telltale clues of a decline in place, the risk of staying in ROKU looks much greater than the risk of getting out of it.As of this writing, James Brumley held no position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The post Time to Take Profits on Roku Stock appeared first on InvestorPlace.
The first quarter was a breeze as Powell pivoted, and China seemed eager to reach a deal with Trump. Both the S&P 500 and Russell 2000 delivered very strong gains as a result, with the Russell 2000, which is composed of smaller companies, outperforming the large-cap stocks slightly during the first quarter. Unfortunately sentiment shifted […]
CEO and Chairman BOD of Roku Inc (NASDAQ:ROKU) Anthony J. Wood sold 400,000 shares of ROKU on 06/17/2019 at an average price of $103.35 a share.
Disney is a stock that Wall Street is laser-focused on as the entertainment powerhouse prepares to launch its streaming TV platform in the fall. So is it time to buy DIS stock at new highs?
There are few companies this year that are raising more eyebrows than Roku (NASDAQ:ROKU) stock. Roku is up over 240% this year, which is 16 times better that the performance of the S&P 500.Source: Shutterstock Clearly this is a momentum stock, and these usually pose a problem for most investors. On the way up, they appear perpetually ready to correct, scaring most investors out. Conversely, few are brave enough to catch them on the way down.The ROKU chart is now so one-sided that it's impossible to find any upside targets from here. Anyone buying it here is clearly hoping for this insane rally to continue.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn early May, although I was leery of it, I shared the potential of Roku hitting $85 per share. The bulls more than delivered on that potential. Up here I cannot chase it because I don't have visibility to upside levels. Besides, the rise was so fast that it has undoubtedly built up a bunch of weak hands below. Sentiment and Technicals in ROKU StockBefore you label me a hater, this is not the same as saying short the stock. I am merely pointing out that it's okay to wait it out a few ticks. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 The markets in general are near all-time highs and going into tremendous geopolitical risk. Some would say that investors are reckless so equities are vulnerable to a correction. Although I don't expect a major one, we could dip on headlines -- but only as part of normal price action. If stocks in general fall, Roku could fall off a cliff. Momentum stocks run fast in both direction.In addition and even with normal price action, breakouts like this need to retest the necklines. Bulls need to know that they have support below before setting new highs.So it would be reasonable to expect Roku stock to drop towards the $82-$88 zone, which was my upside target. So those who are long Roku should not fear this potential drop; it would just be normal price action.Fundamentally, I have problems with the stock. I don't believe in its model as much as Wall Street does. I think onus is on management to prove that they deserve such high valuation. This may be the case that the expectations are too lofty at this point.I have a special label in my trade book for situations like these: THTH -- Too High to chase and Too Hot to short. For those who are set on shorting Roku, use options where a September debit put spread can limit the damage if you're wrong.This stock is not cheap. After 16 years of operations, it is still losing money and its price is 15 times its sales. Buying it up here means that the investors believe that it will grow into its valuation. I remain a skeptic. Bottom Line for RokuI do like the conviction of its fans, but Wall Street can be a fickle bunch. Consider what happened to Nvidia (NASDAQ:NVDA). Every expert loved it when it was at $290 per share. Then suddenly they hated it with a passion.I do like the ROKU sector because, thanks to Netflix (NASDAQ:NFLX), the world now wants to consume media online. Roku has a front seat to that new streaming world. I consider them an aggregator, so they are content-agnostic for now. But I still can't ignore the potential threat from the mega caps that are already in the streaming rat race.I use a Roku stick, but for free, and I would never pay for any of its services because I don't need to. I merely use it to screen share off my phone. It's not popular to say, but there's a risk that the stock has too much love right now.Logic suggests that it is okay to wait it out this high up, even at the expense of missing out on a few upside ticks. The setup for the last mega breakout was obvious to me, so I saw it the rally coming. I don't have that same visibility here, so I put it in the penalty box for now. I would also protect any short-term profits I have, just in case.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room free here. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post Roku Stock Is Streaming Profits for Investors, But Be Careful appeared first on InvestorPlace.
Does Roku, Inc. (NASDAQ:ROKU) represent a good buying opportunity at the moment? Let’s quickly check the hedge fund interest towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on satellite photos and other research activities, so it is no wonder why they tend to […]
Roku (NASDAQ:ROKU) seemingly can do no wrong in investors' eyes. The ROKU stock price has risen 232% so far this year. Among stocks with a market capitalization above $1 billion, only one -- Enphase Energy (NASDAQ:ENPH) -- has done better.Source: Roku Much of the gains seem to have come from sentiment, rather than performance. Roku's first-quarter earnings were impressive, but the company only raised full-year revenue guidance by a couple of million dollars. The increase in the ROKU stock price from pre-earnings levels has added some $4 billion in market value.From here, it looks like too much -- though, admittedly, I've said that before. Back in September, I argued investors should take profits at $70. From a short-term standpoint, that was brilliant advice: ROKU shares would drop 60% in a little over three months. Of course, the stock now is almost 50% above those levels after the torrid gains of late.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTo be sure, I don't think Roku is headed back to $35 or anything close. This remains a wonderful business. I've compared the company to Amazon.com (NASDAQ:AMZN) in terms of its potential to expand well beyond its initial model (book-selling for Amazon, player revenues for Roku). I'm more skeptical than most that Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) or Apple (NASDAQ:AAPL) will dislodge Roku from its leadership in streaming. And I see real growth ahead for Roku.But that's kind of the point: As highly as I think of Roku as a business, I still question ROKU as a stock. And I don't believe, at these prices, it will take much for the market to come around to that viewpoint. ROKU Valuation and Player RevenueRoku isn't yet profitable -- though it is guiding for $10-$20 million in Adjusted EBITDA this year -- so valuation comes down, at the moment, to revenue. And, on that front, even at $100+ ROKU stock doesn't look ridiculously expensive. * 7 Stocks to Buy for the Coming Recession After all, ROKU is valued at just over 11 times its revenue. That's a big number, obviously, but not huge in context. Shares of Shopify (NYSE:SHOP), another consumer-focused platform play, are valued at over 20x sales. (SHOP has some valuation concerns, too, admittedly.) Square (NYSE:SQ) is at about 12x its 2019 guidance for adjusted revenue (which backs out transaction costs). Even Netflix (NASDAQ:NFLX), a more mature company, is valued at over 10x sales (including debt).This is not to say that ROKU is, thus, cheap. But 11x revenue, on its face, isn't obviously illogical. Given that revenue rose 51% in first quarter and is expected to grow 40%+ for the full year, a big multiple makes some sense. Whether "big" means 7x or 11x or 15x likely depends on the type of investor making the case.But there's a catch here. About one-third of this year's revenue, per Roku management, is coming from the sale of players. And that revenue is not worth 11x -- or anything close. Roku likely loses money on player sales: gross margin was 9.8% in Q1 and just 2.4% the quarter before. Combined, the company earned $10 million in gross profit in those two quarters -- and spent $106.7 million just on research and development, much of that spend taking place in the hardware business.It's the platform revenue investors want to buy -- and that revenue this year will only be about $700 million by management estimates. That figure suggests that Roku is trading for a "true" revenue multiple of about 16x. That certainly gets closer to obviously illogical. Is Roku's Business Good Enough?In other words, the only remotely comparable stock that is valued more dearly than Roku is probably Shopify. SHOP has gone on a historic run -- it's gained 120% year-to-date -- and benefits from a likely larger market opportunity. Logically, Roku should trade at a discount to SHOP, but the current gap isn't that big.Is Roku as a company that good, where it's dearly valued even in the rarefied air of fast-growing platform and/or software plays? Perhaps. It's benefiting from the disruption of video content consumption -- and driving some of that disruption itself. The Roku Channel has a clear opportunity. Advertisers continue to flock to its platform. Users are growing, as are hours streamed: the latter figure rose nearly 80% year over year in Q1.All that said, there are some question marks here. Roku still gets immaterial revenue from Netflix and YouTube, which remain the favorite apps among Roku users. The Roku Channel is intriguing -- but it doesn't take a long look at stocks like CBS (NYSE:CBS) or AMC Networks (NASDAQ:AMCX) to see what investors think about ad-supported video at the moment.What's intriguing about Roku is the reason I compared it to Amazon: we don't really know where Roku is going to go, or what it will look like a few years from now. With 29 million accounts, Roku has a base for new initiatives in video or even music streaming. It still has room to go international. Roku can find new ways to add value.But there are still questions about what the business is right now. One-third of revenue is unprofitable. A decent chunk of the remainder comes from the Roku Channel, which potentially puts Roku at odds with some of the offerings on its platforms (think so-called vMPVDs like YouTube TV or DIRECTV NOW from AT&T (NYSE:T)). This isn't a perfect story yet. But the ROKU stock price suggests that it is. A ROKU Pullback?And so there appear to be two near-term risks to the ROKU stock price. The first is that investors question whether paying 15x+ revenue for any stock is wise. We may not see a repeat of the December sell-off that led ROKU shares to plunge, but a correction -- particularly in high-growth names -- wouldn't be a surprise. * 7 Dark Horse Stocks Winning the Race in 2019 The second is that investors keep paying up for quality, but decide Roku doesn't quite belong in the upper tier of growth stocks. That's my sense at the moment, and the key reason for caution above $100. Almost everything has to go right for Roku to keep moving higher -- both in terms of its performance and in overall investor sentiment.That seems like too much to ask in this market -- and maybe too much to ask of this business.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post The Roku Stock Price Is Too High for a Nervous Market appeared first on InvestorPlace.
When it comes to stocks, it's all about expectations. In theory, the present value of a stock is equal to the company's earnings power, discounted back at an appropriate rate. In practice, this basically means that the more optimistic investors are about the future growth of a company, the higher that stock will go, and vice versa.One feature of the expectations game in stocks is that expectations end up being correlated with potential return. The bigger expectations are for a company, the more those positive expectations get priced into the stock, so when good news happens, everyone was ready for it, and the stock consequently fails to rally in a big way.But, when the expectations are low on a company, good news isn't priced in. Thus, when good news converges on a depressed stock, that's when you get the big 20%-plus, 30%-plus, and bigger rallies.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, the expectations game in stocks means that underdog stocks -- or dark horse stocks, as I like to call them -- are often the biggest winners in the market. * 7 Stocks to Buy As They Hit 52-Week Lows Which dark horse stocks are running higher in 2019? Let's take a closer look. Snap (SNAP)YTD Return: 150%Heading into 2019, Wall Street was very pessimistic on shares of Snap (NYSE:SNAP). The social media platform had seen its user base shrink in the back half of 2018, which coincided with a rapid slowdown in revenue growth. At the same time, the company was still reporting wide losses, and competition from bigger digital ad players was only getting more fierce.But, in 2019, the tide has started to turn for this dark horse stock. User growth has come back into the picture. Revenue growth has stabilized. Margins have improved. Competition has become less fierce. Losses have narrowed. In other words, every late 2018 headwind, has turned into an early 2019 tailwind, and SNAP stock has consequently more than doubled this year.Can the rally continue? I'm hesitant to say yes here. Snap stock has come very far, very fast, and the valuation is now very big. User growth, although positive, is still tepid. Revenue growth isn't all that impressive. Margins are still a concern. Competition hasn't gone away entirely. Broadly, although things are improving here, they still aren't great, and that will ultimately keep Snap stock from heading much higher. Roku (ROKU)Source: Shutterstock YTD Return: 230%In late 2018, Wall Street seemed to forget the secular growth story which supported streaming platform Roku (NASDAQ:ROKU). Investors became overly concerned about competition derailing this company's growth trajectory, and a slowdown in the global economy similarly derailing the OTT video trend. ROKU stock was consequently hammered.Those concerns were overstated. The economy hasn't slowed much, and the OTT video trend has only gained momentum in 2019. Further, competition still hasn't caught up to Roku, and the company has continued to dominate the streaming device market this year. As it has, investors have jumped back on the Roku bandwagon, and in a hurry. The stock has more than tripled in 2019. * 7 A-Rated Stocks to Buy Under $10 Can the rally continue? I think so. Sure, Roku stock needs to take a short term breather because, after all, stocks don't go up in straight lines forever -- even dark horse stocks that suddenly pull ahead. But, after that breather, the rally should continue. This company is increasingly turning into the cable box of the OTT video world, and that will translate into billions of dollars in advertising and subscription sharing revenue at scale. Those revenues are high margin, so we are talking potentially hundreds of millions of dollars in profit here. ROKU stock just isn't priced for that, so it will continue to move higher. Stitch Fix (SFIX)Source: Stitch FixYTD Return: 55%Wall Street was quick to fall in love with online personal styling service Stitch Fix (NASDAQ:SFIX). But just as quickly as investors fell in love with the stock, they fell out of love with it. In just over a year after its IPO, SFIX stock went from $15, to $50, back to $15, as investors backed away from the stock in late 2018 as growth dramatically slowed.But the growth slowdown was temporary, due to one-time changes and purposefully lower marketing spend. Those one-offs have been phased out, and marketing spend has re-accelerated. Consequently, growth in 2019 has re-accelerated, too. As it has, SFIX stock has come roaring back. Shares are up more than 50% in 2019.Can the rally continue? I'd say yes. Stitch Fix is changing the game in retail to a curated, on-demand model. We've seen these shifts before. Netflix (NASDAQ:NFLX) changed the content game by curating content and making it on-demand. Chegg (NASDAQ:CHGG) changed the education game by curating textbooks and making learning an on-demand experience. The retail pivot will play out in a similar manner. Curated, on-demand shopping will gain share and traction. As it does, Stitch Fix's growth trajectory will remain favorable, and SFIX stock will stay in rally mode. Advanced Micro Devices (AMD)Source: Shutterstock YTD Return: 70%The best performing stock in the S&P 500 last year was Advanced Micro Devices (NASDAQ:AMD), and the out-performance was all because the relatively small CPU and GPU maker was stealing market share from the far bigger Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA). Investors were concerned that this market share expansion would not persist in 2019, so AMD stock traded lower into the end of 2018.But, AMD stock has risen another 70% in 2019 because the company's market share expansion narrative remains as vigorous as ever. The company continues to beat competitors to market with next-gen chips. At the same time, competitors are struggling with supply shortages. This combination has led to AMD continuing to win share, which has led to AMD stock running higher. * 4 Antitrust Tech Stocks to Keep an Eye On Can this dark horse stock keep running? Yes, but at a more moderate pace. The current outlook is for AMD to keep stealing share from Intel and Nvidia for the foreseeable future. This will power healthy revenue, margin, and profit growth. But, a lot of that growth is already priced in, as AMD stock is significantly more expensive than both Intel stock and Nvidia stock. As such, while the trends here will remain favorable going forward, the uptrend in AMD stock will likely slow. Wayfair (W)Source: Shutterstock YTD Return: 70%Hyper-growth furniture e-retail giant Wayfair (NYSE:W) has never had a problem with top-line growth. Top-line growth rates have always been very big here. Instead, the problem has consistently been with margins, which have remained stubbornly low for a long time despite increased scale. Those depressed margins got more depressed in late 2018, and as they fell, so did Wayfair stock.But, Wayfair stock has staged a huge turnaround in 2019 as top-line growth rates have remained impressive, and margins have started to show signs of improvement. Year-to-date, Wayfair stock is up 70%.How much higher can Wayfair stock go? In the near term, not much higher. The long-term growth narrative here is promising, however. Furniture e-retail is under-penetrated relative to other e-retail segments, and Wayfair is the leader in this under-penetrated yet rapidly growing market. Margins will scale over time, and the company will one day produce sizable profits. But, the valuation already reflects all this growth, and then some. As such, the stock needs to take a breather here around $150. Cronos (CRON)Source: Shutterstock YTD Return: 50%It might be weird to find any marijuana name on a list of dark horse stocks. Pot stocks were all the craze in mid-2018. But as the economy slowed and the legal Canadian cannabis market got off to a rough start thanks to supply shortages, pot stocks dropped big in late 2018. Canadian cannabis producer Cronos (NASDAQ:CRON) was no exception. CRON stock fell from $14 in mid-2018, to $7 in late 2018.But the stock has staged a huge turnaround in 2019 thanks to three things: the global economy has stabilized, the Canadian cannabis market has found its footing, and Cronos scored a huge near $2 billion investment from tobacco giant Altria (NYSE:MO). In response to all that good news, CRON stock has risen 50% in 2019. * 9 Hot Stocks to Buy Now Will renewed strength in CRON stock persist? Probably not. Cronos is the smallest of the well known Canadian cannabis producers in terms of volume of cannabis sold last quarter. But, the company has one of the largest market caps in the group, because of the Altria investment. In other words, investors expect the Altria investment to supercharge growth and allow Cronos to expand. Now, Cronos needs to deliver on those expectations. If they don't, the stock could crater. If they do, well, it's already priced in. As such, the risk-reward here doesn't look great at the current moment. Axon (AAXN)Source: Shutterstock YTD Return: 55%Last, but not least, on this list of dark horse stocks that have run higher in 2019 is law enforcement technology solutions provider Axon (NASDAQ:AAXN). This company has pivoted from selling tasers to selling a suit of cloud-hosted technology solutions to law enforcement communities around the world. As it has, the company's growth trajectory has improved meaningfully, and AAXN stock has shot higher. But, that growth trajectory hit some turbulence in late 2018 as growth slowed. Investors weren't impressed. AAXN stock dropped from $75 to $40 in late 2018.Growth has picked back up in 2019. AAXN stock has consequently rebounded in a big way, rallying more than 50% over the past five months.How much higher can Axon stock go? The rally may be over. For now. In the big picture, the growth narrative here is really good. The law enforcement world desperately needs a tech makeover. Axon is giving it a tech makeover. There's hardly any competition, because Axon has either acquired or squashed everyone else in this space. Also, the cloud-hosted solutions pivot means higher margins at scale, so not only is this a big revenue growth story, but it's also a big profit growth story, too.Having said all that, the stock is already priced for all that growth, and further upside is hard to justified, even under optimistic long term growth assumptions.As of this writing, Luke Lango was long ROKU, SFIX, NFLX, CHGG, and INTC. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy As They Hit 52-Week Lows * 4 Antitrust Tech Stocks to Keep an Eye On * 5 Gold and Silver Stocks Touching Intraday Highs Compare Brokers The post 7 Dark Horse Stocks Winning the Race in 2019 appeared first on InvestorPlace.
Editor's note: This story was previously published in May 2019. It has since been updated and republished.It's a different market than it was at the beginning of 2018.It's a choppier, more cautious, environment. That's not a bad thing, however. After a basically uninterrupted post-election rally, several stocks have seen pullbacks that provide more attractive entry points. Others simply haven't received their due credit from the market.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhile there might be reasons for caution overall -- higher interest rates, trade war concerns -- more opportunities exist as well. * 7 Stocks to Buy As They Hit 52-Week Lows This more and more looks like a "stockpicker's market." For those stockpickers, here are 10 stocks to buy that look particularly attractive. Exxon Mobil (XOM)Past year performance: -10%I'm as surprised as anyone that Exxon Mobil Corporation (NYSE:XOM) makes this list. I've long been skeptical toward XOM. The internal hedge between upstream and downstream operations makes Exxon stock a surprisingly poor play on higher oil prices, as we've seen in recent weeks. Overall, it leads XOM to stay relatively rangebound, as it has been for basically a decade now. Source: Shutterstock With the dividend well over 4% and a 14.5 times forward price-earnings (P/E) multiple, Exxon Mobil stock looks like a value play. Meanwhile, management is forecasting that earnings can double by 2025, adding a modest growth component to the story.Obviously, there's a risk that Exxon management is being too optimistic. Years of underperformance relative to peers like Chevron (NYSE:CVX) and even BP (NYSE:BP) has eroded the market's confidence. If Tesla Inc (NASDAQ:TSLA) can lead a true electric car revolution, that, too, could impact demand and pricing going forward. Nathan's Famous (NATH)Past year performance: -26.5 %In this market, recommending a restaurant owner, let alone a hot dog restaurant owner, might seem silly at best. But there's a strong bull case for Nathan's Famous, Inc. (NASDAQ:NATH).Source: FlickrNATH, too, has seen a steady decline since late 2018. The stock touched a 52-week (and all-time) high just over $100 in July 2018. It's since come down about 50%, yet the story hasn't really changed all that much.Revenues grew by just about 8% in 2018 (the most recent fiscal year). The company's agreement with John Morrell, who manufactures Nathan's product for retail sale and Sam's Club operations, offers huge margins, while its bottom line continues to grow. Foodservice sales similarly are increasing. * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% The restaurant business has been choppier, but it remains profitable. The "mostly franchised" model there is similar to those of Domino's Pizza (NYSE:DPZ) and Yum! Brands (NYSE:YUM), among others, all of whom are getting well above-market multiples.All told, Nathan's has an attractive licensing model, which leverages revenue growth across the operating businesses. And yet, at 13x EV/EBITDA, the stock trades at a significant discount to peers. Bank of America (BAC)Past year performance: -8%Bank of America Corp (NYSE:BAC) trades just a few dollars off its highest levels since the financial crisis and has gained over 100% from July 2016 lows. Trading has been a bit choppier of late, and there's a case, perhaps, to wait for a better entry point.Source: Shutterstock But I've liked BAC stock for some time now, and, as I wrote previously, I don't see any reason to back off yet. Earnings growth should be solid for the foreseeable future, given rising interest rates and a strong economy.BofA itself has executed nicely over the past few years. The company's credit profile is solid and its stock has outperformed other big banks like JPMorgan Chase & Co. (NYSE:JPM). And tax reform and easing capital restrictions mean a big dividend hike could be on the way as well.And despite the big run, it's not as if BAC is expensive. The stock still trades at less than ten times 2019 EPS estimates. Unless the economy turns south quickly, that seems too cheap. So it looks like the big run in Bank of America stock isn't over yet. Roku (ROKU)Past year performance: 145%Roku Inc (NASDAQ:ROKU) undoubtedly is the riskiest stock on this list, and there certainly is a case for caution. The company remains unprofitable on even an Adjusted EBITDA basis. A 9x EV/revenue multiple isn't cheap.Source: Shutterstock But with more than 28 million active users, Roku is a fast-growing platform deserving of its high-ish multiple. This year, Roku looks to build a true content ecosystem, and from a subscriber standpoint, already has surpassed Charter Communications (NASDAQ:CHTR) and trails only AT&T (NYSE:T) and Comcast Corporation (NASDAQ:CMCSA).Again, this is a high-risk play but it's also a high-reward opportunity. * 10 Stocks to Buy That Could Be Takeover Targets Margins in the platform segment are very attractive and should allow Roku to turn profitable relatively quickly. International markets remain largely untapped. There's a case for waiting for a better entry point, or selling puts. But I like ROKU at these levels for the growth/high-risk portion of an investor's portfolio. Brunswick (BC)Past year performance: -37%Down 17% over the past year, Brunswick Corporation (NYSE:BC) is due for a breakout. The boat, engine and fitness equipment manufacturer is trading around $43, and despite a boating sector that has roared of late, the industry leader has been mostly left out.Source: Shutterstock Efforts to build out a fitness business have had mixed results and may support some of the market's skepticism toward the stock. But Brunswick now is spinning that business off, returning to be a boating pure-play. * 6 Big Dividend Stocks to Buy as Yields Plunge Cyclical risk is worth noting, and there are questions as to whether millennials will have the same fervor for boating as their parents. But at a nine times forward EPS, with earnings still growing double-digits, BC is easily worth those risks.And if the stock finally can break through resistance, a breakout toward $70-plus seems likely. Pfizer (PFE)Past year performance: 18%Few investors like the pharmaceutical space at this point or even healthcare as a whole. But amidst that negativity, Pfizer Inc. (NYSE:PFE) looks forgotten.Source: Shutterstock This still is the most valuable drug manufacturer in the world. It trades at just 13 times forward EPS, a multiple that suggests profits will stay basically flat in perpetuity. To top it off, PFE offers a 3.36% dividend yield.Obviously, there are risks here. Drug pricing continues to be subject to political scrutiny (though the spotlight seems to have dimmed of late). Revenue growth has flattened out of late.But Pfizer still is growing earnings, with adjusted EPS rising 1.3% last year and guidance suggesting a similar increase this year. Tom Taulli previously cited three reasons to buy Pfizer stock -- and I think he's got it about right. Valmont Industries (VMI)Past year performance: -23%Valmont Industries, Inc. (NYSE:VMI) offers a diversified portfolio business and has been relatively weak across the board of late. The irrigation business has been hit by years of declining farm income. Support structures manufactured for utilities and highways have seen choppy demand due to uneven government spending. Mining weakness has had an impact on Valmont's smaller businesses as well.Source: Shutterstock Valmont is a cyclical business where the cycles simply haven't been much in the company's favor. Yet that should start to change. 5G and increasing wireless usage should help the company's business with cellular phone companies.Irrigation demand almost has to return at some point. And a possible infrastructure plan from the Trump Administration would benefit Valmont as well. * 7 Bank Stocks to Leave in the Vault Concerns about the tariffs on steel likely have hit VMI, and sent it back to support below $150. But many of Valmont's contracts are "pass-through," which limits the direct impact of those higher costs on the company itself. Despite uneven demand, EPS has been growing steadily and should do so in 2019 as well.And yet VMI trades at an attractive 16x multiple -- a multiple that suggests Valmont is closer to the top of the cycle than the bottom. That seems unlikely to be the case, and as earnings grow and the multiple expands, VMI has a clear path to upside. American Eagle Outfitters (AEO)Past year performance: -28%American Eagle Outfitters (NYSE:AEO) is one of the, if not the, best stocks in retail, and that's kind of the problem. Mall retailing, in particular, has been a very tough space over the past few years, and it's not just the impact of Amazon.com, Inc. (NASDAQ:AMZN) and other online retailers. Traffic continues to decline, which pressures sales and has led to intense competition on price, hurting margins.Source: Mike Mozart via Flickr (Modified)But American Eagle has survived rather well so far, keeping comps positive and earnings stable. And yet this stock, too, trades at around 13.6x EPS, backing out its net cash. And American Eagle has an ace in the hole: its aerie line, which continues to grow at a breakneck pace.The company's bralettes and other products clearly are taking share from L Brands Inc (NYSE:LB) unit Victoria's Secret. And the ecommerce growth in that business, and for American Eagle as a whole, suggests an ability to dodge the intense pressure on mall-based retailers.In short, American Eagle isn't going anywhere. There's enough here to suggest American Eagle can eke out some growth, and a 3.14% dividend provides income in the meantime.The stock already is recovering, being one of the only on this list with a positive chart over the past year, and AEO stock should continue to perform well. Longer-term, there's still room for consistent growth and more upside. United Parcel Service (UPS)Past year performance: -16% United Parcel Service, Inc. (NYSE:UPS) is going to have to spend to add capacity, and in this space, too, there's the ever-present threat of Amazon.Source: Shutterstock But UPS is an entrenched leader, along with rival FedEx Corporation (NYSE:FDX), and it at worst can co-exist with Amazon. Ecommerce growth overall should continue to increase demand; there's enough room for multiple players in the global market. * 7 Stocks to Buy for Monster Growth Meanwhile, the selloff and benefits from tax reform mean that UPS now is trading at just 13 times analysts' 2019 consensus EPS estimate. And the stock yields a healthy 3.44%. Investors clearly see a risk that growth will decelerate, but UPS stock is priced as if that deceleration is guaranteed.As of this writing, Vince Martin is long shares of Exxon Mobil. He has no positions in any other securities mentioned. More From InvestorPlace * 7 A-Rated Stocks That Are Under $10 * 7 Stocks That Are Soaring This Earnings Season * 5 Biotech Stocks for a Long-Lived Portfolio * 10 Times Apple's Hardware Failed Consumers -- And Hurt Its Business Compare Brokers The post 9 Hot Stocks to Buy Now appeared first on InvestorPlace.
Calendar 2019 has been quite the recovery year for shares of over-the-top (OTT) video platform Roku (NASDAQ:ROKU). In late 2018, amid escalating global economic slowdown concerns, investors seemingly forgot about Roku's secular growth narrative. Consequently, ROKU stock exited 2018 around $30. Then, the company reported back-to-back strong earnings reports which jolted the market's memory, and investors flocked back into the stock.Source: Shutterstock Today, ROKU stock trades hands above $100, meaning this stock has more than tripled in less than six months.That's a big rally. Naturally, it's big enough to warrant some caution. After all, the law of financial gravity states that stocks don't go up in straight lines forever. ROKU stock has essentially gone up in a straight line since late 2018 from $30 to $100. The stock naturally needs to take a breather here and now, and let the fundamentals catch up.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut don't mistake a breather in the stock for the end of a long term uptrend.In the big picture, there is increasing clarity to the bull thesis that Roku is on track to become the cable box and central access point in the OTT video world. This world will one day be huge, full of hundreds of millions of subscribers, billions of ad dollars, and billions of subscription dollars. Roku will take home a big share of all those subs and dollars, and do so at a high margin. * 10 Stocks to Buy That Could Be Takeover Targets The result? Roku will one day be a very big and very profitable company. Ultimately, that very big and very profitable company will be accompanied by a stock price north of $150.Thus, Roku stock remains on a long-term winning trajectory. It just needs to take a breather here. Once it does, that's an opportunity to buy. Roku Will Be Huge One DayThe big picture bull thesis on Roku stock is pretty simple.The OTT video world is rapidly expanding globally and will one day be huge in terms of subscribers, ad dollars, and subscription dollars. Roku is increasingly turning into the cable box of this world and as such, is at the epicenter of this explosive growth. As the market expands, so will Roku's revenues and profits, and ROKU stock will zoom higher.Let's break that bull thesis down. First, OTT video is the future. Relative to linear TV, OTT video is cheaper and more convenient. As such, global consumption will continue to shift from linear TV to OTT video. Right now, there are 250 million OTT video households in the world, which represents a fraction of the 1 billion-plus linear TV households in the world. Over time, that OTT video household base will expand and close in on the 1 billion-plus linear TV household base.Second, this shift will be accompanied by a shift in subscription and ad dollars. As consumers pivot from linear TV to OTT video, consumer dollars will likewise pivot from linear TV packages to streaming services. Meanwhile, ad dollars always follow consumption. So as consumption shifts from linear TV to OTT video, ad dollars will follow suit. In the United States, traditional TV ad spend is nearly $70 billion, while OTT video ad spend is barely over $2 billion, implying huge growth potential for OTT video ad spend over the next several years as traditional TV dollars flow into the OTT channel.Third, Roku is at the epicenter of all this growth. A rapid rise in the number of OTT video consumers and OTT video services means someone has to connect all this new demand to all this new supply. Roku does just that. And, they do it better than anyone else, offering a content-neutral, easy-to-use platform without complications for OTT video consumers to access any OTT video service they want. As such, Roku is becoming the cable box of OTT video.Broadly, then, the OTT video world is rapidly growing and Roku is at the center of all that growth. A Price Tag Above $100 Is SupportedTo be sure, a lot of the aforementioned bull thesis is already priced into ROKU stock. After all, this stock has more than tripled in less than six months, and now trades at 14-times trailing sales.But there remains healthy upside potential in ROKU stock in the long run.Given the company's current growth trajectory, secular tailwinds underpinning OTT video adoption and the massive addressable market of 1 billion-plus global TV households, it is quite likely that Roku marches towards 100 million active accounts by 2025, versus 29 million today. Further, given the huge growth runway for OTT video ad dollars, it is equally likely that Roku continues to grow its average revenue per user rate at a 15%-plus clip over the next several years, versus 26.5% growth last quarter.That combination ultimately implies that Roku has revenue potential well north of $4 billion by 2025. Assuming Platform gross margins scale towards 70%, Player gross margins remain depressed around 5%, and the opex rate falls with scale towards 40%, then $5.50 in EPS looks entirely doable for Roku by 2025.Based on a big growth average 30-times forward multiple, that implies a fiscal 2024 price target for ROKU stock of $165. Discounted back by 10% per year, that equates to a fiscal 2019 price target of just over $100. * 7 Ways to Make Berkshire Hathaway Stock More Attractive Bottom Line on ROKU StockRoku stock has come very far, very fast, so investors shouldn't be surprised if the stock takes a step back here and now. But the stock still has healthy and promising upside in a long term window. Ultimately, this stock remains on track to shoot above $150 in the long run.As of this writing, Luke Lango was long ROKU. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 4 FANG Stocks Won't Be Bitten By Regulation Threats * 10 Stocks to Buy That Could Be Takeover Targets * 4 Big Bank Stocks Rebounding Compare Brokers The post Does Roku Stock At $100 Make Sense? Yes. appeared first on InvestorPlace.
It remains to be seen if it will last, but with two big days of bullishness under its belt, the S&P 500 at least has a shot at rekindling its bigger-picture rally. Or, perhaps yesterday's 0.82% jump is only a setup for the next wave of selling.Source: Allan Ajifo via Wikimedia (Modified)Whatever it was, Roku (NASDAQ:ROKU) set the tone, gaining almost 9% as a follow-up to Tuesday's rally in response to a key upgrade from Guggenheim. Leading the charge, however, was Campbell Soup Company (NYSE:CPB) with its 10% advance. The food company popped following a quarterly earnings beat driven by strong snack-food sales.There were some losers, however. In fact, despite yesterday's gain, there were almost as many losers as there were winners, and there was more bearish volume than bullish volume. The biggest offender? Cloudera (NYSE:CLDR). The stock fell more than 3% during the regular session, but was off more than 30% in after-hours action after a disappointing Q1 was made worse by news that CEO Tom Reilly would be stepping down.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best Stocks for 2019 -- So Far Headed into Thursday's trading, however, it's the stock charts of FleetCor Technologies (NYSE:FLT), Walmart (NYSE:WMT) and Pfizer (NYSE:PFE) that are of the most interest. Here's a look at why, and what needs to happen next. Pfizer (PFE)Just a few weeks ago, shares of drug company Pfizer were fighting a losing battle. Although still dishing out plenty of bullish swings, the undertow was bearish, marked with clear, falling support and resistance lines.That downtrend may still be intact. But, PFE is close to punching its way out of it. Not one but two crucial ceilings are now being pressured, and one more good day could get Pfizer over a major hump. Click to Enlarge * The first of those technical ceilings is the line that traces all the key highs since February, plotted in yellow on both stocks charts. * The second line in the sand is the white 200-day moving average line, plotted in white on both stock charts. Clearing both lines could easily prove catalytic. * What's different about this effort from others is that this one has the advantage of starting out with a bullish MACD cross on the weekly chart. FleetCor Technologies (FLT)After a rough finish to last month and an equally poor beginning of this one -- marked with a move under its purple 50-day moving average line -- it looked like FleetCor Technologies shares might snap out of that funk on Tuesday. No such luck though. While the stock was up for a short while on Wednesday, the sizeable reversal back into the red actually underscores how much trouble FleetCor shares are in. * 7 Small-Cap ETFs to Buy Now Click to Enlarge * FLT only had to approach the blue 20-day moving average line yesterday to inspire a renewed wave of profit-taking that dragged shares back under the 50-day line. * Although the daily chart suggests how overbought FleetCor Technologies shares were into the end of May, the weekly chart confirms the stock was technically overbought and ripe for selling. * This may be part of a bigger effort to close the gap that was left behind in February, which is highlighted on the daily chart. Walmart (WMT)Finally, back in mid-May we pointed out Walmart shares were being squeezed into a converging wedge pattern. Although the longer-term and shorter-term trend appeared bullish, the bears still had an opportunity to quell that rally and even knock the stock back into a downtrend.As of Wednesday though, that doesn't look like it's going to happen. With a little help from the broad markets, WMT has broken above the upper boundary of the converging wedged pattern and is positioned to make a healthy move that has been largely on hold for months. Click to Enlarge * The upper boundary is plotted in white on both stock charts, extending back to the early 2018 peak. * At the same time, the upper edge of the converging wedge pattern has been pierced, a near-term horizontal ceiling around $104.07 has also been hurdled. * Although it has been inconsistent at times, the Chaikin line's cross back above zero in April has further diverged, suggesting there's healthy volume behind the advance up until this point.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 4 FANG Stocks Won't Be Bitten By Regulation Threats * 10 Stocks to Buy That Could Be Takeover Targets * 4 Big Bank Stocks Rebounding Compare Brokers The post 3 Big Stock Charts for Thursday: Pfizer, Walmart and FleetCor Technologies appeared first on InvestorPlace.
Shares of Roku (ROKU) soared nearly 9% Wednesday after Guggenheim analysts turned more bullish on the streaming TV company. Let's see why investors might want to buy Roku stock at its new highs.