Why Roku (ROKU) is a Top Growth Stock for the Long-Term

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities likely to outperform the market in the short term [2] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales, aiming to find attractive investment opportunities [3] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [4] Momentum Score - The Momentum Score identifies trends in stock prices and earnings outlooks, helping investors time their positions based on recent price changes and earnings estimate revisions [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.86% since 1988, outperforming the S&P 500 [7] - There are typically over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down their choices [8] Stock to Watch: Roku - Roku is a leading TV streaming platform in North America, currently rated 1 (Strong Buy) with a VGM Score of B and a Growth Style Score of A, indicating a projected year-over-year earnings growth of 255.9% for the current fiscal year [11] - Recent upward revisions from eight analysts have increased Roku's earnings estimate for fiscal 2026 by $0.81 to $2.10 per share, with an average earnings surprise of +97.8% [12]