Score 9.2 (out of 10): ROKU INC poised to seasonally rally by +42.2% during the next 90 days.

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What’s Going On Here?

After the recent drop from $400 to $125, analysts are adjusting their share price targets but – importantly, they are maintaining their constructive view – as seen my Citigroup’s analyst last week. The average price target is +47% higher.

Why Now?

ROKU INC indicates an interesting 90 days seasonal set up. During similar occasions, ROKU INC shares had a median return of +42.2% – based on 4 historical occasions with 4 of those showing positive returns (100%). This buy signal for ROKU INC received a high score of 9.2 (out of 10). This insight was generated with last price of 123.75.

What’s This Company About?

ROKU INC is in the Internet Content-Entmnt business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: ROKU US.

What’s My Risk / Reward and Time Horizon?

We found 90 days to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 175.91 (+42.2%) has been reached. Based on ROKU INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 109.65 (last price at 123.75), which is equivalent to a -11.4% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

27.8% (March-2021), 43.2% (March-2020), 57.4% (March-2019), 42.2% (March-2018)

Historical Chart:

Summary:

NameROKU INC
ViewUp
Star (1 to 10)9.2
Target42.2%
Time90 days
Hit Rate100%

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