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

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Roku (ROKU) closed at $317.62 in the latest trading session, marking a -0.26% move from the prior day. This move lagged the S&P 500’s daily gain of 0.52%. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.12%.

Coming into today, shares of the video streaming company had lost 23.04% in the past month. In that same time, the Consumer Discretionary sector lost 3.27%, while the S&P 500 lost 0.76%.

Investors will be hoping for strength from ROKU as it approaches its next earnings release. On that day, ROKU is projected to report earnings of -$0.17 per share, which would represent year-over-year growth of 62.22%. Our most recent consensus estimate is calling for quarterly revenue of $493.55 million, up 53.86% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.34 per share and revenue of $2.54 billion, which would represent changes of -142.86% and +42.77%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ROKU. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 9.89% higher. 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 145, which puts it in the bottom 44% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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