Oversold Roku Stock Bounces After "Top Pick" Tag

Analysts have remained bullish on ROKU, despite its recent slide

Dec 26, 2018 at 12:57 PM
facebook X logo linkedin


The shares of Roku Inc (NASDAQ:ROKU) are trading up 5.1% today at $28.55, after Needham called the streaming device stock its "Top Pick for 2019." The analyst in coverage cited strong growth potential, and said Roku could be an attractive takeover target.

This bullish positioning toward Roku is hardly unusual, with nine of 13 analysts calling the stock a "buy." Plus, the average 12-month price target of $60.46 is more than double the equity's current perch.

Options traders have remained upbeat toward ROKU stock, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 2.85 ranks in the 75th annual percentile, meaning calls have been bought to open over puts at a quicker-than-usual clip.

On the charts, however, Roku shares have done little to warrant such optimism. Since topping out at a record high of $77.57 on Oct. 1, the shares have plunged almost 63% -- and hit a 13-month low of $26.30 during the broader Christmas Eve sell-off. As such, ROKU's 14-day Relative Strength Index (RSI) closed Monday at 20 -- well into oversold territory -- suggesting today's bounce may have been in the cards.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI