Roku (ROKU) ended the recent trading session at $119.62, demonstrating a +2.29% change from the preceding day's closing price. This change outpaced the S&P 500's 1.75% gain on the day. On the other hand, the Dow registered a gain of 1.86%, and the technology-centric Nasdaq increased by 2.54%.
Shares of the video streaming company witnessed a loss of 6.95% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 1.28%, and the S&P 500's loss of 1.63%.
The upcoming earnings release of Roku will be of great interest to investors. It is anticipated that the company will report an EPS of $0.61, marking a 771.43% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.3 billion, up 16.93% from the year-ago period.
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 +17.19%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Roku. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. Roku is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Roku is presently being traded at a Forward P/E ratio of 48.5. This indicates a premium in contrast to its industry's Forward P/E of 13.93.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 164, this industry ranks in the bottom 33% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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).