60.6 F
New York
Monday, October 19, 2020

The Unprecedented Rise of Roku Inc. (NASDAQ:ROKU)

Must read

Is Now the Time to Invest in Bristol-Myers Squibb Company (NYSE:BMY)?

Bristol-Myers Squibb Company (BMY) shares are trading at higher $61.24 and the avg recommendation for the stock is Strong Buy, while the current analyst...

FuelCell Energy Inc. (NASDAQ:FCEL) is Gaining Momentum on Earnings Catalyst

FuelCell Energy Inc. (FCEL) shares are trading at lower $2.33 and the avg recommendation for the stock is Hold, while the current analyst price...

General Motors Company (NYSE:GM) on the Path to Profitability

General Motors Company (GM) shares are trading at higher $33.45 and the avg recommendation for the stock is Strong Buy, while the current analyst...

WPX Energy Inc. (NYSE:WPX) Finding Zero Support

WPX Energy Inc. (WPX) shares are trading at lower $4.57 and the avg recommendation for the stock is Moderate Buy. To add more color...

Roku Inc. (ROKU) shares are trading at lower $226.47 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $179.79.

To add more color to this target, the company’s high over the last year is $239.14 and the low is $58.22. Over the last 52 weeks, ROKU is up 70.92% while the S&P 500 is up 16.45%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, ROKU reported a profit of $146.84 million. Roku Inc. also saw revenues increase to $356.07 million. In addition, ROKU has free cash flow of $15.99 million as of 06-2020. The company’s EBITDA came in at -$5.28 million which compares well with its peers.

ROKU booked profit margins of -10.30%, its Return on Equity (ROE) is -19.40%, and its Return on Assets is -9.60%. All told, it is clear that, ROKU needs to be on your watchlist.

Find out when ROKU reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. ROKU has a short ratio of 0.85 and outstanding shares of 122.61M.

Company Outlook

ROKU has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 7.07 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.15. Roku Inc. ROKU also noted assets of $1.85 billion at the end of the last quarter. Investors should also keep an eye on sector updates as ROKU has historically followed its peers on positive news.

All told, Roku Inc. ROKU has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ROKU represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Roku Inc. ROKU is now commanding a market cap of 28.23B and a float of 105.65M. ROKU is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of ROKU stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in ROKU, either long or short, and we have not been compensated for this article.

Latest article

Kohl’s Corporation (NYSE:KSS) is Gaining Momentum on Earnings Catalyst

Kohl's Corporation (KSS) shares are trading at lower $20.21 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

The Rejuvenation of JetBlue Airways Corporation (NASDAQ:JBLU)

JetBlue Airways Corporation (JBLU) shares are trading at lower $12.24 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

OPKO Health Inc. (NASDAQ:OPK) Recent Earnings Shows Major Promise

OPKO Health Inc. (OPK) shares are trading at higher $4.30 and the avg recommendation for the stock is Strong Buy. To add more color...

The Unprecedented Rise of Globus Maritime Limited (NASDAQ:GLBS)

Globus Maritime Limited (GLBS) shares are trading at higher $0.13. To add more color to this target, the company’s high over the last year...

Southwest Airlines Co. (NYSE:LUV) Finding Strong Support

Southwest Airlines Co. (LUV) shares are trading at higher $39.68 and the avg recommendation for the stock is Moderate Buy, while the current analyst...