In the latest trading session, Roku (ROKU) closed at $157.45, marking a +1.63% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.48%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 0.56%.
Heading into today, shares of the video streaming company had lost 1.74% over the past month, outpacing the Consumer Discretionary sector's loss of 3.76% and lagging the S&P 500's loss of 0.82%.
The upcoming earnings release of Roku will be of great interest to investors. The company is predicted to post an EPS of $0.55, indicating a 243.75% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.41 billion, up 16.49% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.78 per share and a revenue of $5.61 billion, signifying shifts of +371.19% and +18.34%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Roku. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate has moved 0.9% higher within the past month. Roku is currently sporting a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Roku is at present trading with a Forward P/E ratio of 55.75. This indicates a premium in contrast to its industry's Forward P/E of 11.11.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 104, putting it in the top 43% 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.
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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Roku, Inc. (ROKU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).