Roku (ROKU) Stock Sinks As Market Gains: What You Should Know – September 13, 2021
In the latest trading session, Roku (ROKU – Free Report) closed at $322.82, marking a -1.67% move from the previous day. This change lagged the S&P 500’s daily gain of 0.23%.
Coming into today, shares of the video streaming company had lost 8.19% in the past month. In that same time, the Consumer Discretionary sector gained 1.8%, while the S&P 500 gained 0.65%.
Investors will be hoping for strength from ROKU as it approaches its next earnings release. On that day, ROKU is projected to report earnings of $0.06 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $683.63 million, up 51.36% from the prior-year quarter.
ROKU’s full-year Zacks Consensus Estimates are calling for earnings of $1.31 per share and revenue of $2.85 billion. These results would represent year-over-year changes of +1035.71% and +60.18%, respectively.
Any recent changes to analyst estimates for ROKU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 5.52% higher. ROKU is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, ROKU is currently trading at a Forward P/E ratio of 250.23. Its industry sports an average Forward P/E of 15.41, so we one might conclude that ROKU is trading at a premium comparatively.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 117, putting it in the top 47% 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.
To follow ROKU in the coming trading sessions, be sure to utilize Zacks.com.