Earnings Estimates Moving Higher for Roku (ROKU): Time to Buy?

Core Viewpoint - Roku (ROKU) is positioned as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price appreciation [1][2]. Earnings Estimate Revisions - Analysts are increasingly optimistic about Roku's earnings prospects, leading to higher earnings estimates that are expected to positively influence the stock price [2]. - The current-quarter earnings estimate is $0.28 per share, reflecting a year-over-year increase of +216.7%. Over the past 30 days, the Zacks Consensus Estimate has risen by 37.22% due to five upward revisions and one downward revision [5]. - For the full year, Roku is projected to earn $0.33 per share, representing a year-over-year change of +137.1%. The consensus estimate has increased by 182.05% over the past month, with eight estimates moving higher and no negative revisions [6][7]. Zacks Rank and Performance - Roku has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which is a reliable indicator of potential stock performance. Historically, Zacks 1 Ranked stocks have generated an average annual return of +25% since 2008 [3][8]. - Stocks with Zacks Rank 1 and 2 (Buy) have been shown to significantly outperform the S&P 500, reinforcing the positive outlook for Roku [8]. Market Reaction - Investors have shown confidence in Roku, as evidenced by a 5.7% gain in the stock price over the past four weeks, driven by strong earnings growth prospects [9].