In the latest trading session, Roku (ROKU) closed at $38.80, marking a -1.1% move from the previous day. This change was narrower than the S&P 500’s daily loss of 1.2%. At the same time, the Dow lost 1.1%, and the tech-heavy Nasdaq lost 2.86%.
Coming into today, shares of the video streaming company had lost 27.59% in the past month. In that same time, the Consumer Discretionary sector lost 4.14%, while the S&P 500 lost 4.77%.
Roku will be looking to display strength as it nears 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $801.12 million, down 7.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$3.66 per share and revenue of $3.06 billion. These totals would mark changes of -314.04% and +10.75%, respectively, from last 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.
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 0.16% 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 226, which puts it in the bottom 11% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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