In the latest trading session, Roku (ROKU) closed at $40.56, marking a -0.34% move from the previous day. This change was narrower than the S&P 500’s 0.4% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 4.72%.
Prior to today’s trading, shares of the video streaming company had lost 27.86% over the past month. This has lagged the Consumer Discretionary sector’s loss of 6.73% and the S&P 500’s loss of 5.57% in that time.
Investors will be hoping for strength from Roku as it approaches its next earnings release. In that report, analysts expect Roku to post earnings of -$1.70 per share. This would mark a year-over-year decline of 1100%. Our most recent consensus estimate is calling for quarterly revenue of $801.12 million, down 7.42% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Roku. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection has moved 1.83% lower. Roku currently has 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 233, which puts it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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