Here's Why Roku (ROKU) Gained But Lagged the Market Today
Roku (ROKU) closed at $75.89 in the latest trading session, marking a +0.97% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1%. Meanwhile, the Dow experienced a rise of 0.78%, and the technology-dominated Nasdaq saw an increase of 1.51%.
The video streaming company's shares have seen a decrease of 4.17% over the last month, surpassing the Consumer Discretionary sector's loss of 4.58% and falling behind the S&P 500's loss of 2.14%.
The investment community will be paying close attention to the earnings performance of Roku in its upcoming release. In that report, analysts expect Roku to post earnings of -$0.44 per share. This would mark year-over-year growth of 20%. Our most recent consensus estimate is calling for quarterly revenue of $1.15 billion, up 16.37% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Roku. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.72% higher. Currently, Roku is carrying a Zacks Rank of #2 (Buy).
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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