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Roku (ROKU) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Roku (ROKU) closed at $108.60, marking a +1.64% move from the previous day. Read More...
Tessco (TESS) delivered earnings and revenue surprises of -1050.00% and -13.99%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?

In the latest trading session, Roku (ROKU) closed at $108.60, marking a +1.64% move from the previous day. This change outpaced the S&P 500’s 0.28% gain on the day. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.71%.

Prior to today’s trading, shares of the video streaming company had gained 1.86% over the past month. This has outpaced the Consumer Discretionary sector’s loss of 0.41% and lagged the S&P 500’s gain of 1.93% in that time.

Investors will be hoping for strength from ROKU as it approaches its next earnings release, which is expected to be August 7, 2019. Meanwhile, our latest consensus estimate is calling for revenue of $224.75 million, up 43.32% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.58 per share and revenue of $1.04 billion. These totals would mark changes of -625% and +39.72%, respectively, from last year.

It is also important to note the recent changes 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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, the Zacks Consensus EPS estimate remained stagnant. ROKU is currently a Zacks Rank #1 (Strong Buy).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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