Roku (ROKU) closed at $43.20 in the latest trading session, marking a +1.79% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.76%. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, lost 0.9%.

Heading into today, shares of the video streaming company had lost 33.33% over the past month, lagging the Consumer Discretionary sector’s loss of 2.26% and the S&P 500’s loss of 1.41% in that time.

Investors will be hoping for strength from ROKU as it approaches its next earnings release, which is expected to be February 20, 2019. On that day, ROKU is projected to report earnings of $0.01 per share, which would represent a year-over-year decline of 83.33%. Meanwhile, our latest consensus estimate is calling for revenue of $261.17 million, up 38.73% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.13 per share and revenue of $728.04 million. These totals would mark changes of +94.2% and +41.98%, respectively, from last year.

Any recent changes to analyst estimates for ROKU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 has moved 9.2% higher. ROKU is currently sporting a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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