Roku stock: buy or sell
Updated on:
Jan 27th, 2021
1
Roku stock brief
- Roku closed on Tuesday at $403.40 after dropping a -5.45%.
- The stock is configuring an uptrend pattern since June 2020, when it bottomed at $100.19. This uptrend marked a 302.63% gain
- Bank of America posted a strong bullish rating for Roku on Monday, forecasting $500.00
- Roku, Inc., together with its subsidiaries, operates a TV streaming platform. The company operates in two segments, Platform and Player.
Should I buy Roku stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $ROKU stock a buy?
Currently, Roku stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for $ROKU in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Roku stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies help us to avoid impetuous decisions based on our personal emotions or the buzz surrounding the market. When selling, as well as buying, our strategies are very simple to follow but are only applicable for selling stocks in your porfolio, not for shorting $ROKU stock
As a rule of thumb, you should never mantain an investment that leads to losses greater than those expected upon the buy. The moment to sell your stock always has to be ruled by the stop-loss (automatic or manual)
Is it time to sell Roku stock?
In the current situation of Roku there is not any eligible sell setup, so Roku stock holders with operations in green can keep their positions
Roku ratings
In the last month, 10 analyst ratings were published for Roku. General sentiment is bullish, with 8 out of 10 posting positive forecasts
| Brokerage firm | Rating |
|---|---|
| Jan 4th, 2021 | |
| Rosenblatt Securities | |
| Jan 5th, 2021 | |
| Deutsche Bank Aktiengesellschaft | Buy → |
| Wells Fargo & Company | Buy |
| Jan 7th, 2021 | |
| Needham & Company LLC | |
| Jan 11th, 2021 | |
| Smith Barney Citigroup | Neutral |
| Jan 12th, 2021 | |
| Macquarie | Buy → Buy |
| Jan 13th, 2021 | |
| Needham & Company LLC | |
| Jan 15th, 2021 | |
| Moffett Nathanson | Neutral |
| Jan 19th, 2021 | |
| JPMorgan Chase & Co. | Buy |
| Jan 25th, 2021 | |
| Bank of America | |
Roku stock analysis
Roku stock started an uptrend in June 2020, and gained a gorgeous 302.63%. During this uptrend, the price provided some entry points on the breakouts. Latest pullback was on January 4, when price bounced at $316.46. Currently, it swings in a consolidation between its last top ($448.17) and its last bottom ($316.46)
SMAs overview
Supports and resistances
The current resistances are:
The current supports are:
Bollinger bands
Since the price surpassed the upper band on January 19, the price has been corrected downwards by 7.98%
Relative strength index
After breaking above the overbought zone yesterday, sliced back below with a reading of 59.36. This is a weak signal for the Roku shares and it should raise our awarness of weakness in the price action
Roku stock price history
Roku started trading priced at an adjusted price1 of $15.80 on Sep 2017. Since then, ROKU stock surged by 2,453.16%, with an average of 817.72% per year. If you had invested $1,000USD in Roku stock at that time, it would worth $25,531.65 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Roku stock
Nobody can predict how much a stock will be priced in the future. However, many stock price forecasts are issued every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions publish their price estimates based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new financial data by the company, and many times. Again, these targets are not direct recommendations for small investors and must not be trusted blindly.
The average price target for Roku stock calculated from the table below is $434.25. Roku closed at $403.40 on Tuesday, so the target price is expecting a growth by 7.65%.
| Brokerage firm | Price target |
|---|---|
| Jan 4th, 2021 | |
| Rosenblatt Securities | Not available |
| Jan 5th, 2021 | |
| Deutsche Bank Aktiengesellschaft | $260.00 → $400.00 |
| Wells Fargo & Company | $275.00 → $414.00 |
| Jan 7th, 2021 | |
| Needham & Company LLC | $315.00 → $400.00 |
| Jan 11th, 2021 | |
| Smith Barney Citigroup | $375.00 → $460.00 |
| Jan 12th, 2021 | |
| Macquarie | $275.00 → $460.00 |
| Jan 13th, 2021 | |
| Needham & Company LLC | Not available |
| Jan 15th, 2021 | |
| Moffett Nathanson | $180.00 → $365.00 |
| Jan 19th, 2021 | |
| JPMorgan Chase & Co. | $475.00 |
| Jan 25th, 2021 | |
| Bank of America | $380.00 → $500.00 |
Earnings and financials
Investors call was hosted by Roku ($ROKU) last November after presenting the financial report. Roku topped consensus earnings estimates and posted of $0.09, that is a 122.50% improvement compared to the predictions of $-0.40. Similarly, reported revenues were $451.7 million compared to estimates of $366.3 million.
Same quarter last year, reported EPS was $-0.22, so recently posted EPS means an improvement of 140.91%. Sales exploded a 73.10% on an annualized basis in the , from $2.6B to $4.5B last quarter.Roku ($ROKU) will host the earnings call next Thursday. Market analysts analysts predict of $-0.07, that is a 177.78% less than Q3.
Roku competitors
Roku is classified inside the Telecommunications sector and the Entertainment industry, where it has industry peers.
Roku most relevant competitors are:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| Roku ($ROKU) | $53.7B | | 8 |
| Roku ($ROKU) | $53.7B | | 8 |
| Emerson Radio (MSN) | $24.7M | Neutral | 0 |
1 In the last 30 days.
Roku performance
To better understand Roku performance you must compare its gains with other related stocks in same sector or industry.. For Roku, the benchmark is made against Roku and Emerson Radio.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Roku ($ROKU) | 12.00% | 80.40% | 161.30% |
| Roku ($ROKU) | 20.20% | 91.10% | 178.20% |
| Emerson Radio (MSN) | 15.70% | 23.80% | 58.20% |
Important:
The thoughts given in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have an understanding of the individual positions of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for education reasons onlyRoku summary
| Tuesday, January 26th, 2021 | |
|---|---|
| Open | $424.98 |
| Close | $403.4 |
| Day range | $400.31 - $429.39 |
| Previous close | $426.64 |
| Session gain | -5.45% |
| Average true range | $27.56 |
| 50d mov avg | $330.11 |
| 100d mov avg | $264.76 |
| 200d mov avg | $198.36 |
| Earnings date | February 11th, 2021 |