Roku (ROKU) Gains But Lags Market: What You Should Know
Roku (ROKU) closed at $423.58 in the latest trading session, marking a +0.45% move from the prior day. The stock lagged the S&P 500's daily gain of 0.58%.
Coming into today, shares of the video streaming company had gained 20.83% in the past month. In that same time, the Consumer Discretionary sector gained 1.28%, while the S&P 500 gained 2.17%.
Wall Street will be looking for positivity from ROKU as it approaches its next earnings report date. The company is expected to report EPS of $0.13, up 137.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $617.2 million, up 73.34% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.37 per share and revenue of $2.74 billion, which would represent changes of +364.29% and +54.08%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ROKU. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ROKU is currently a Zacks Rank #3 (Hold).
Digging into valuation, ROKU currently has a Forward P/E ratio of 1127.54. This valuation marks a premium compared to its industry's average Forward P/E of 14.33.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 121, which puts it in the top 48% 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.
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