Roku (ROKU, $157.30) gets price target hike from Bank of America Merrill Lynch, on product deals
Roku got a price target hike from Bank of America Merrill Lynch.
Analysts at the bank raised their price target on the video streaming platform’s shares to $160 from $150. Analyst Ziv Israel indicated that lower device average selling prices and new smart TV offerings imply a solid outsize growth for the fourth quarter.
Roku recently announced shopping deals including $30 discount on the Roku Smart Soundbar, which will then retail for $150 between Nov. 24 and Dec. 7; the Roku Streaming Stick+ to retail for $30 (after a $20 cut) between Nov. 24 and Dec. 2.; Roku Ultra, whose price will be slashed by half to $50 between Nov. 28 and Dec. 2.
Momentum Indicator for ROKU turns negative, indicating new downward trend
ROKU saw its Momentum Indicator move below the 0 level on September 13, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 86 similar instances where the indicator turned negative. In of the 86 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for ROKU turned negative on September 13, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
ROKU moved below its 50-day moving average on September 13, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ROKU crossed bearishly below the 50-day moving average on September 19, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 10 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ROKU declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ROKU's RSI Oscillator exited the oversold zone, of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 57 cases where ROKU's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ROKU advanced for three days, in of 312 cases, the price rose further within the following month. The odds of a continued upward trend are .
ROKU may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ROKU’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.939) is normal, around the industry mean (4.611). P/E Ratio (66.667) is within average values for comparable stocks, (77.399). ROKU's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.724). Dividend Yield (0.000) settles around the average of (0.061) among similar stocks. P/S Ratio (3.067) is also within normal values, averaging (111.297).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ROKU’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a developer of applications for digital media
Industry MoviesEntertainment
ROKU and
Correlation & Price change
A.I.dvisor indicates that over the last year, ROKU has been loosely correlated with WBD. These tickers have moved in lockstep 54% of the time. This A.I.-generated data suggests there is some statistical probability that if ROKU jumps, then WBD could also see price increases.
| Ticker / NAME | Correlation To ROKU | 1D Price Change % | ||
|---|---|---|---|---|
| ROKU | 100% | -2.62% | ||
| WBD - ROKU | 54% Loosely correlated | -1.47% | ||
| PARAA - ROKU | 48% Loosely correlated | -5.16% | ||
| PARA - ROKU | 47% Loosely correlated | -4.77% | ||
| PARAP - ROKU | 47% Loosely correlated | -3.01% | ||
| NFLX - ROKU | 45% Loosely correlated | -0.94% | ||
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