Roku Stock – Roku (ROKU) Dips More Than Broader Markets: What You Should Know
Roku (ROKU) closed at $357.74 in the latest trading session, marking a -0.81% move from the prior day. This move lagged the S&P 500’s daily loss of 0.09%.
Prior to today’s trading, shares of the video streaming company had gained 15.61% over the past month. This has outpaced the Consumer Discretionary sector’s gain of 0.75% and the S&P 500’s gain of 5.45% in that time.
ROKU will be looking to display strength as it nears its next earnings release, which is expected to be May 6, 2021. In that report, analysts expect ROKU to post earnings of -$0.18 per share. This would mark year-over-year growth of 60%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $493.32 million, up 53.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.36 per share and revenue of $2.54 billion. These totals would mark changes of -157.14% and +42.71%, respectively, from last year.
It is also important to note the 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 past month, the Zacks Consensus EPS estimate has moved 7.12% lower. ROKU is currently sporting a Zacks Rank of #3 (Hold).
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.
To follow ROKU in the coming trading sessions, be sure to utilize Zacks.com.
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