- Roku (ROKU) leads U.S. TV streaming platforms, boasting over 60 million active accounts and strong ad-driven revenue growth.
- ROKU exhibits robust technical momentum with shares up nearly 60% over the past year.
- The stock maintains a 100% “Buy” opinion from Barchart.
- Analyst sentiment is mixed, but Roku has multiple “Buy” ratings and price targets up to $180.
Today’s Featured Stock
Valued at $23.4 billion, Roku (ROKU) is the leading TV streaming platform provider in the United States based on hours streamed. The company reported over 60 million active accounts attributed to the sale of stand-alone streaming devices, partnerships with leading TV makers who license the Roku OS to manufacture and sell Roku TV models, and licensing of Roku OS to certain service operators.
Moreover, Roku is benefiting from growth in advertising driven by monetized video ad impressions on the increasing popularity of The Roku Channel. Important factors contributing to this growth include the continued growing interest in streaming by traditional TV advertisers, as well as ongoing investment in the company’s OneView ad platform and overall ad tech capabilities.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. ROKU checks those boxes. The Trend Seeker issued a new “Buy” signal on June 15. Since then, the stock has gained 11.8%.
Barchart’s Technical Indicators for Roku
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Roku scored a 3-year high of $159.89 on Aug. 25.
- Roku has a Weighted Alpha of 76.06.
- ROKU has a 100% “Buy” opinion from Barchart.
- The stock has gained 59.90% over the past 52 weeks.
- Roku has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $157.64 with a 50-day moving average of $148.
- ROKU had 9 new highs and gained 7.96% in the last month.
- 60-month beta of 2.05.
- Relative Strength Index (RSI) is at 62.89.
- There’s a technical support level around $155.40.
Don’t Forget the Fundamentals
- $23.4 billion market capitalization.
- 63.74x trailing price-earnings ratio.
- Revenue is projected to grow 18.73% this year and another 12.15% next year.
- Earnings are estimated to increase by 394.59% this year and an additional 31.20% next year.
Analyst and Investor Sentiment on Roku
- The Wall Street analysts followed by Barchart give the stock 7 “Strong Buy,” 2 “Moderate Buy,” and 21 “Hold” opinions with price targets between $130 and $175.
- Value Line does not rate the stock but has price targets from $110 to $180.
- Morningstar thinks the stock is fairly valued.
- CFRA’s MarketScope rates the stock as “Buy” with a price target of $160.
- 122,230 investors are following the stock on Seeking Alpha, which rates it a “Hold” with concerns of its valuation.
- TipRanks’ analysts’ price targets are between $156 and $175 with a consensus price target of $163.11.
- Short interest is 7.03% of the float with 3.74 days to cover the float.
The Bottom Line on Roku
Roku’s latest earnings call was very positive and received praise from many analysts. The stock momentum is on a steady climb.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculate should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.