Core Viewpoint - Roku, Inc. is experiencing positive momentum in its stock performance, driven by strong interest from advertisers in its streaming platform [1] Company Overview - Roku, Inc. operates a TV streaming platform that provides access to shows, movies, news, and sports, alongside selling streaming devices, smart TVs, audio products, and offering digital advertising services [1] Investment Insights - RGA Investment Advisors has had a fluctuating investment journey with Roku, initially purchasing shares in late 2018 and maintaining a significant position despite market volatility [1] - The firm has learned valuable lessons regarding holding high valuations and managing tax implications, particularly during market downturns like the tariff crash, where they increased their position significantly [1]

Economic Overview - Signs of economic stability have improved investor sentiment, leading to a stock market rebound over the last two sessions [1] - Positive economic data has raised hopes for a Federal Reserve rate cut in December, despite previous concerns about high inflation and a shrinking labor market [4][6] Consumer Stocks Investment - Recommended consumer stocks for investment during the holiday season include Carnival Corporation & plc (CCL), fuboTV Inc. (FUBO), Ralph Lauren Corporation (RL), and Roku, Inc. (ROKU) [2] - These stocks have experienced positive earnings estimate revisions in the past 60 days and carry a Zacks Rank 2 (Buy), indicating potential for solid returns [3][11] Individual Stock Analysis - **Carnival Corporation & plc (CCL)**: Expected earnings growth rate for the current year is 52.8%, with a 1.4% improvement in earnings estimates over the last 60 days [10] - **fuboTV Inc. (FUBO)**: Expected earnings growth rate exceeds 100%, with earnings estimates improving by more than 100% in the past 60 days [12] - **Ralph Lauren Corporation (RL)**: Expected earnings growth rate is 25%, with a 3% improvement in earnings estimates over the last 60 days [13] - **Roku, Inc. (ROKU)**: Expected earnings growth rate exceeds 100%, with an 83.3% improvement in earnings estimates over the last 60 days [14] Market Sentiment and Rate Cut Expectations - Investors are optimistic about a potential Federal Reserve rate cut in December, with an 89.2% chance of a quarter percentage point cut being priced in by the markets [7] - Recent economic reports, including a decline in private payrolls, have fueled expectations for further easing by the Federal Reserve [5][11]

Group 1: Roku - Roku is the leading TV streaming platform provider in the United States, Canada, and Mexico, with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Roku's current year earnings increased by 83.3% over the last 60 days [1] - Roku's shares gained 8% over the last three months, outperforming the S&P 500's gain of 4.5% [2] Group 2: Northrim BanCorp - Northrim BanCorp is a full-service commercial bank offering a complete range of personal and business banking services, with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Northrim BanCorp's current year earnings increased by 6.4% over the last 60 days [2] - Northrim BanCorp's shares gained 6.5% over the last three months, also outperforming the S&P 500's gain of 4.5% [3] Group 3: Electromed - Electromed manufactures, markets, and sells products that provide airway clearance therapy to patients with compromised pulmonary function, holding a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Electromed's current year earnings increased by 2.9% over the last 60 days [3] - Electromed's shares gained 28.3% over the last three months, significantly outperforming the S&P 500's gain of 4.5% [4]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Group 1: Company Performance - Roku (ROKU) is the leading TV streaming platform provider in the U.S., Canada, and Mexico, with a Zacks Consensus Estimate for current year earnings increasing by 83.3% over the last 60 days [1] - AvePoint (AVPT), a data management solutions provider, has seen its Zacks Consensus Estimate for current year earnings increase by 18.5% over the last 60 days [1] - eToro Group Ltd. (ETOR), engaged in trading and investing, has experienced an 8% increase in its Zacks Consensus Estimate for current year earnings over the last 60 days [2] - Northrim BanCorp (NRIM), a full-service commercial bank, has seen a 6.4% increase in its Zacks Consensus Estimate for current year earnings over the last 60 days [2] - OptimizeRx (OPRX), which provides platforms to help patients afford and comply with healthcare products, has seen a 6% increase in its Zacks Consensus Estimate for current year earnings over the last 60 days [3]

Group 1: Roku, Inc. (ROKU) - Roku has a Zacks Rank 1 and its current year earnings estimate increased by 83.3% over the last 60 days [1] - Roku's shares rose by 27.2% over the last three months, outperforming the S&P 500's increase of 6.8% [1] - The company has a Momentum Score of A [1] Group 2: Fox Corporation (FOXA) - Fox Corporation holds a Zacks Rank 1 with a 5.6% increase in its current year earnings estimate over the last 60 days [2] - Fox's shares gained 20.3% in the last three months, also surpassing the S&P 500's 6.8% increase [2] - The company has a Momentum Score of B [2] Group 3: Cboe Global Markets, Inc. (CBOE) - Cboe Global Markets has a Zacks Rank 1 and its current year earnings estimate increased by nearly 5% over the last 60 days [3] - Cboe's shares increased by 4.4% over the past month, compared to the S&P 500's 0.8% rise [3] - The company possesses a Momentum Score of A [3]

Core Viewpoint - Investor sentiment is currently bullish due to solid third-quarter earnings, despite concerns over a government shutdown and economic data blackout [2][5] Group 1: Stock Recommendations - Recommended stocks include Roku, Inc., Universal Health Services, Inc., and Atlassian Corp., which have received upgraded broker ratings [3][6] - Roku, Inc. is the leading TV streaming platform in the U.S., Canada, and Mexico, with a projected earnings increase of 134.8% year-over-year for 2025 and a 6.7% upward revision in broker ratings [6] - Universal Health Services operates over 355 inpatient acute care hospitals and is expected to see a 27.6% increase in earnings for 2025, with a 5% upward revision in broker ratings [7][8] Group 2: Broker Insights - Brokers provide valuable insights through direct engagement with company management, public disclosures, and earnings calls, allowing for a comprehensive assessment of a company's fundamentals [4] - While broker upgrades can signal potential stock performance, they should not be the sole basis for investment decisions, as sustainable returns require a broader analysis [5]

Core Insights - Wall Street analysts are shifting focus from steady earnings growth to earnings acceleration due to October's stock market volatility, as earnings acceleration is a key driver of stock prices [1][9] - Companies like NIO Inc., Roku, Inc., and Groupon, Inc. are demonstrating significant earnings acceleration, indicating potential for stock price rallies [2][9] Earnings Acceleration - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), characterized by an increase in quarter-over-quarter earnings growth rates [3] - This concept helps identify stocks that have not yet attracted investor attention, which can lead to a subsequent rally in share prices [4] Earnings Growth Indicators - A rising percentage of earnings growth suggests a fundamentally sound company, while stagnant or declining growth rates may indicate consolidation or potential price declines [5] - Analysts recommend looking for stocks where the last two quarter-over-quarter EPS growth rates exceed previous periods, with projected growth rates for the upcoming quarter also expected to surpass prior periods [6][9] Stock Screening Criteria - Specific criteria for identifying earnings accelerators include: - Current quarter EPS growth rate must exceed the previous quarter's growth rate [7] - Completed quarter's growth rate must exceed the growth rate from two quarters ago [7] - Current stock price should be greater than or equal to $5 to filter out low-priced stocks [7] - Average 20-day trading volume should be at least 50,000 to ensure adequate liquidity [8] Featured Companies - **NIO Inc.**: Expected earnings growth rate for the current year is 34.4%, focusing on smart electric vehicles [10] - **Roku, Inc.**: Expected earnings growth rate for the current year is 113.5%, operating a TV streaming platform [11] - **Groupon, Inc.**: Expected earnings growth rate for the current year is nearly 153%, connecting consumers to merchants through discounted offerings [12]

Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors select stocks with high potential for market outperformance [3][8] Zacks Style Scores - The Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each rated from A to F based on specific investment characteristics [4][5][6][7] - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - Growth Score emphasizes a company's financial health and future growth potential based on earnings and sales projections [5] - Momentum Score assesses stocks based on price trends and earnings estimate changes, indicating optimal times for investment [6] - VGM Score combines all three styles to highlight stocks with the best value, growth, and momentum characteristics [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment success [10] Stock Example: Roku - Roku is identified as a leading TV streaming platform in North America, currently holding a Zacks Rank of 3 (Hold) with a VGM Score of B [12] - The stock has a Momentum Style Score of B, with a recent price increase of 3.2% over the past four weeks [12] - Analysts have revised Roku's earnings estimate upwards, with the Zacks Consensus Estimate increasing by $0.29 to $0.12 per share, and the company has an average earnings surprise of +75.4% [13]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, helping investors identify stocks likely to outperform the market [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - Evaluates a company's financial health and future outlook through projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks with upward or downward trends in price or earnings, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988, outperforming the S&P 500 [7][8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] Stock Highlight: Roku - Roku is a leading TV streaming platform in North America, currently rated 3 (Hold) with a VGM Score of A [12] - The stock has a Momentum Style Score of A, with a 10.2% increase in shares over the past four weeks [12] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.30 to $0.12 per share, with an average earnings surprise of +75.4% [13]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [3][4] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [4] Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score helps investors capitalize on price trends by analyzing short-term price changes and earnings estimate shifts [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with strong value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8][10] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [9] Stock to Watch: Roku - Roku is the leading TV streaming platform in the U.S., Canada, and Mexico, currently rated 3 (Hold) with a VGM Score of B [12] - Roku's Momentum Style Score is B, with shares increasing by 0.7% over the past four weeks [12] - Nine analysts have raised Roku's earnings estimates for fiscal 2025, with the consensus estimate increasing by $0.31 to $0.12 per share, and an average earnings surprise of +75.4% [13]