Roku (ROKU) closed the most recent trading day at $139.25, moving -1.39% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.
Prior to today's trading, shares of the video streaming company had gained 16.79% outpaced the Consumer Discretionary sector's gain of 1.44% and the S&P 500's gain of 1.64%.
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 $0.61 per share, which would represent year-over-year growth of 771.43%. Meanwhile, our latest consensus estimate is calling for revenue of $1.3 billion, up 16.98% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.41 per share and a revenue of $5.55 billion, indicating changes of +308.47% and +17.23%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Roku. Recent revisions tend to reflect the latest near-term business trends. 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0% rise in the Zacks Consensus EPS estimate. Roku is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Roku is presently trading at a Forward P/E ratio of 58.57. This represents a premium compared to its industry average Forward P/E of 13.73.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 112, finds itself in the top 46% echelons 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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Roku, Inc. (ROKU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).