Roku (ROKU) closed the most recent trading day at $63.20, moving +0.41% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.3%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.34%.
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Heading into today, shares of the video streaming company had lost 8.57% over the past month, lagging the Consumer Discretionary sector’s loss of 5.31% and the S&P 500’s loss of 1.21% in that time.
Roku will be looking to display strength as it nears its next earnings release. On that day, Roku is projected to report earnings of -$1.48 per share, which would represent a year-over-year decline of 678.95%. Our most recent consensus estimate is calling for quarterly revenue of $711.53 million, down 3.02% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$5.35 per share and revenue of $3.28 billion, which would represent changes of -47.79% and +4.93%, respectively, from the prior year.
Any recent changes to analyst estimates for Roku should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.05% lower. Roku is holding a Zacks Rank of #3 (Hold) right now.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.