In the latest close session, Roku (ROKU) was up +1.81% at $90.90. The stock's change was more than the S&P 500's daily gain of 0.32%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.26%.
The video streaming company's stock has climbed by 10.73% in the past month, exceeding the Consumer Discretionary sector's gain of 5.77% and the S&P 500's gain of 4.51%.
Market participants will be closely following the financial results of Roku in its upcoming release. On that day, Roku is projected to report earnings of -$0.16 per share, which would represent year-over-year growth of 33.33%. Alongside, our most recent consensus estimate is anticipating revenue of $1.07 billion, indicating a 10.7% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.18 per share and a revenue of $4.55 billion, indicating changes of +79.78% and +10.63%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Roku. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.26% higher. Right now, Roku possesses a Zacks Rank of #2 (Buy).
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 176, this industry ranks in the bottom 29% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Story ContinuesRoku, Inc. (ROKU) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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