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

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Roku (ROKU - Free Report) closed at $147.78 in the latest trading session, marking a -1.32% move from the prior day. This change lagged the S&P 500's daily gain of 0.29%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.3%.

Heading into today, shares of the video streaming company had gained 14.7% over the past month, outpacing the Consumer Discretionary sector's gain of 3.45% and the S&P 500's gain of 2.99% 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 -$0.28, down 211.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $258.07 million, up 48.84% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.50 per share and revenue of $1.08 billion, which would represent changes of -525% and +45.76%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ROKU. Recent revisions tend to reflect the latest near-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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 10.71% 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 group has a Zacks Industry Rank of 209, putting it in the bottom 19% 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.

To follow ROKU in the coming trading sessions, be sure to utilize Zacks.com.


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