Company Performance - Roku's stock closed at $60.22, reflecting a +1.6% change from the previous day, but underperformed compared to the S&P 500's gain of 1.81% [1] - Over the past month, Roku shares have decreased by 12.36%, while the Consumer Discretionary sector and the S&P 500 have lost 7.73% and 6.14%, respectively [1] Earnings Forecast - Roku is expected to report an EPS of -$0.27, which indicates a 22.86% improvement from the same quarter last year [2] - Revenue is projected to be $1 billion, representing a 13.98% increase compared to the year-ago quarter [2] Full Year Estimates - For the full year, analysts anticipate an EPS of -$0.26 and revenue of $4.59 billion, marking changes of +70.79% and +11.52% from the previous year [3] Analyst Estimates - Recent changes in analyst estimates for Roku are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] - The Zacks Rank system, which incorporates these estimate changes, currently ranks Roku as 2 (Buy) [6] Industry Context - Roku operates within the Broadcast Radio and Television industry, which is part of the Consumer Discretionary sector and holds a Zacks Industry Rank of 61, placing it in the top 25% of over 250 industries [7]

Core Insights - The average brokerage recommendation (ABR) for Roku is 1.73, indicating a consensus between Strong Buy and Buy based on 29 brokerage firms' recommendations [2] - The ABR consists of 18 Strong Buy and 2 Buy recommendations, accounting for 62.1% and 6.9% of total recommendations respectively [2] - Despite the positive ABR, reliance solely on brokerage recommendations may not be advisable due to their historical lack of success in guiding investors towards high-potential stocks [5][10] Brokerage Recommendations - Brokerage firms often exhibit a strong positive bias in their ratings, with a tendency to issue five Strong Buy recommendations for every Strong Sell [6] - This bias suggests that brokerage interests may not align with retail investors, leading to misleading recommendations [7][10] - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of near-term stock performance compared to ABR [8][11] Zacks Rank vs. ABR - The Zacks Rank is a quantitative model that utilizes earnings estimate revisions, while ABR is based solely on brokerage recommendations [9] - The Zacks Rank is updated more frequently, reflecting timely changes in earnings estimates, unlike the potentially outdated ABR [12] - Roku currently holds a Zacks Rank of 2 (Buy), supported by a 0.4% increase in the Zacks Consensus Estimate for the current year to -$0.26 [13][14] Investment Outlook for Roku - Analysts' optimism regarding Roku's earnings prospects is indicated by a consensus in revising EPS estimates higher, suggesting potential for stock appreciation [13] - The combination of the recent consensus estimate change and other earnings-related factors has contributed to Roku's favorable Zacks Rank [14]

Roku (ROKU) has been on a downward spiral lately with significant selling pressure. After declining 20.9% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is o ...

Core Viewpoint - Investors have been selling Roku stock, leading to a decline of nearly 18% in its share price recently, influenced significantly by an analyst's price target cut [1] Group 1: Analyst Assessment - Jason Bazinet from Citigroup has reduced his fair value assessment of Roku from $103 to $81 per share, while maintaining a neutral recommendation [2] - The price target reduction is attributed to newly introduced tariffs affecting Roku's reliance on foreign manufacturers for hardware, alongside concerns about a softening macroeconomy [3] Group 2: Company Outlook - Despite recent challenges, Roku is viewed as a compelling investment due to the ongoing popularity of video streaming services and its service-neutral operating system that facilitates user transitions between providers [4] - The company is guiding for an operating profit by 2026 and has shown encouraging growth numbers, suggesting that the current share price weakness may present a buying opportunity [5]

In a number of ways, Roku (ROKU -5.48%) has the makings of a market-beating growth stock. The company is the leading streaming distribution platform in North America. When viewers in the U.S., Mexico, and Canada tune in to watch Netflix or another streaming service, they are more likely to use a Roku- enabled device than any other. This shows that the company has defended its market share against competition from big tech companies like Amazon, Alphabet, and Apple. Roku's stock popped after its last earning ...

On Friday, JP Morgan analyst Brent Navon maintained a Buy rating on Roku ROKU with a price target of $100.Roku is a leading video streaming platform company that provides access to a wide array of content via its hardware devices and operating software.Over the last decade, the media and entertainment industry has undergone a significant secular shift toward streaming.Also Read: Roku Has ‘War Time’ CEO? Analyst Says Yes And Sees More New Positives For The CompanyRoku has been at the forefront of this by ena ...

Core Viewpoint - Roku is considered undervalued in the streaming market and is expected to recover and grow in the coming years despite current challenges [1][11]. Company Performance - Roku's stock is trading at 2.9 times trailing sales, indicating a valuation more akin to struggling retailers than to its entertainment technology peers [4]. - The stock has decreased by 9% in the past month, with a beta of 2.1, suggesting high volatility and risk [5]. - Active accounts increased by 16.8% and 16.5% in the first two quarters of 2023, despite flat revenue growth [6][7]. Customer Growth - Roku's customer count has grown by 28.3% over the past two years and 49.4% since the end of 2021, indicating a strong foundation for future growth [8]. - The company maintained its pricing strategy during inflation, which helped it gain customers while competitors raised prices [7]. Future Outlook - Recovery in profitability is expected to take more than a year, but Roku has raised prices in 2024 and anticipates a more favorable economic environment [9]. - The advertising business is expected to evolve, contributing to increased profitability by 2025 [10].

Core Viewpoint - Needham analyst Laura Martin maintains a Buy rating on Hooker Furnishings Corp with a price target of $120.00, highlighting Roku's revenue streams and growth potential in subscription services [1] Revenue Streams - Roku generates revenue from three main streams: hardware, advertising, and subscription revenue shares, with subscription revenue shares projected to be a key growth driver, accounting for 48% of total Platform Segment revenues in 2024 [1] - Subscription revenue shares are expected to provide stable, annuity-like income, with software contributing over 85% in 2024 [2] Advertising and Integration - Roku's DSP integrations with platforms like The Trade Desk and Google DV360 are seen as positive investments, expanding its total addressable market by attracting new advertisers [2][3] - Roku sells 50% of its ad units, with DSPs taking 15% of brand spending, leading to incremental margins from DSP demand exceeding 80% [3] Growth Potential - The Roku Channel (TRC) is anticipated to drive revenue growth in 2025, with TRC accounting for 2.1% of total U.S. streaming hours and an 89% increase in viewership noted in February 2025 [4] - Roku's expansion into small and medium-sized businesses (SMBs) and its emerging Retail Media Network (RMN) capabilities are expected to bolster growth [4] Financial Outlook - Roku's return on invested capital (ROIC) is projected to improve, with cash from operations expected to double in 2025 and continue growing through 2026 [5] - The increase in asset productivity is likely to positively impact Roku's share price [5] Competitive Landscape - Roku faces challenges from major tech companies like Google, Meta, and Amazon in the advertising space, but its growth amidst competition suggests continued expansion [6] - Concerns regarding device margins and free cash flow due to Roku's venture into TV manufacturing are considered sentiment-driven, as TV sales represent a small portion of total revenue [6] Stock Performance - Roku shares traded higher by 2.01% at $79.87 [7]

Roku’s (ROKU) shares have risen 5.8% in the past six months compared with the Zacks Consumer Discretionary sector’s growth of 5.3%. The stock has been riding on ROKU’s leading position as a TV streaming platform provider in the United States, Canada and Mexico based on hours streamed. It benefits from growth in advertising, driven by monetized video ad impressions on the increasing popularity of its platform. Moreover, while already dominant in North America, the company is methodically expanding its footpr ...

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Roku (ROKU) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.Roku is a member of our Consumer Discretionary group, which includes 268 di ...