Roku Inc (ROKU)
Up over 70% in the past year but down 5% year to date, Roku stock is presently a great buying opportunity thanks to it’s robust revenue growth and big EPS estimates. Analysts are holding their Strong Buy rating and have an average 1 year forecast of $127.5 which is a 24% increase over where ROKU trades today.
| ROKU | |
| Share Price | $102.47 |
| Earnings Per Share | $0.59 |
| EPS (Analyst Forward 1yr) | $2.10 |
| Price to Earnings | 173.7 |
| EPS Growth (Projected 1 yr) | 255.9% |
| PEG | 0.7 |
At face value their 173 price to earnings seems massive for a company like Roku who provides entertainment hardware – but one look at their incredible 255% EPS growth forecasts over the next 9 months tells us this valuation is more than justified. Analysts are forecasting a $2.10 EPS for Dec 2026 which gives Roku a PEG ratio of just 0.7 right now.
Roku has also beat all 4 of their last earnings calls which improves our confidence that they will be able to meet or even exceed their earnings estimates over the short term. On top of these promising earnings projections and beats, their market share in the connected TV device market continues to dominate with estimates as high as a 37% share of the US market last year (with Amazon coming in second at 17%).
For these reasons, we have put ROKU as a medium risk, high reward stock and have it rated a Strong Buy with a $117.84 price prediction which would be a +15% year over year increase.
Topics: Roku stock price prediction, ROKU stock analysis, why is Roku stock down
