Roku, Inc. (NASDAQ:ROKU) has been one of the highest-flying stocks so far in 2019 with year to date returns already reaching 70%. With earnings coming out later this week, it’s an important time for investors to decide whether to sell this high performer or hang on for yet another possible boost in share price.
However, let’s first take into context the sharp rise in price the stock has been on lately. While Roku has been growing significantly in value, it’s still nowhere near its 52-week high and it’s simply recovered back to where it was in November when it was in the middle of a free fall.
The good news for investors is that Roku has beaten earnings for four straight quarters, and by significant margins. If it can continue to do so this coming quarter, then the stock could very well rise even further in price.
Given the stock’s recent track record and the fact that the rally is really still a recovery from last year’s tumble, I’d be inclined to hold onto the stock going into earnings. While there’s a risk that the company could miss earnings, given the strength of the markets lately, I wouldn’t anticipate a big drop in value unless Roku has a big disappointment in its results.
And with online streaming remaining popular among consumers, Roku’s streaming platform is likely still heavily in demand and I wouldn’t expect that things would taper off anytime soon. It’s always a gamble going into earnings whether a stock will get a boost or not, but Roku looks to be a good buy today.
