Roku (ROKU) closed at $100.99 in the latest trading session, marking a +2.5% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 2.51%. At the same time, the Dow added 2.85%, and the tech-heavy Nasdaq gained 2.8%.
Shares of the video streaming company witnessed a loss of 2.01% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 4.12%, and underperforming the S&P 500's loss of 1.66%.
Investors will be eagerly watching for the performance of Roku in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 278.95% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, up 17.88% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.1 per share and a revenue of $5.51 billion, representing changes of +255.93% and +16.28%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Roku. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Roku presently features a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Roku currently has a Forward P/E ratio of 46.94. Its industry sports an average Forward P/E of 13.85, so one might conclude that Roku is trading at a premium comparatively.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 146, this industry ranks in the bottom 41% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Roku, Inc. (ROKU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).