Best Stocks of the Year: Roku Is Number 2

The streaming media platform provider has had a banner year in 2019.
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For 2019, TheStreet has compiled a list of the top 25 stocks of the year, looking at everything from stock performance and quarterly results versus expectations to execution against strategy and each stock’s overall story.

After publishing round-ups for the 25th-ranked through the 6th-ranked stocks, we're now running individual articles on our top five picks, with our top choice to be revealed on Friday. Please check TheStreet.com each day between now and then to read about our latest picks.

Picks 25-21 20-16 15-11 10-6 No. 5 No. 4 No. 3

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Just about a year ago Roku ROKU was crashing down classically. No doubt influenced by the risk-averse crowd against stocks, we saw Roku slip from all-time highs in early October to plunging 65% in just under three months! The company’s stock was obliterated overnight and with the pressure from sellers, there seemed no end in sight.

But after this swoon and an about-face from investors, Roku turned higher and followed through with some volume. The technicals bottomed and started to move in a bullish direction. I penned an article in Jan. 2019 for realmoney.com readers in which I made this my stock pick of the year. At the time, Roku was trading around the mid-30s.

Suffice to say that Roku has been the leading gainer in the stock market for most high profile names in 2019. Even as the stock is off its all-time highs, Roku is still up a staggering 400% from when my article first appeared on Real Money and about 340% for the year. That, my friends, is a home run trade if you bought it at the start of the year and held onto it.

We traded options on Roku several times during the year with some great gains (100% or more), many of those shared with readers of Real Money and Real Money Pro.

The confident CEO Anthony Wood has been right about his business. Streaming is a competitive business but it is here to stay. Wood’s frequent appearances on CNBC and Jim Cramer’s Mad Money have reinforced the phenomenon of cord-cutting. The company has sold record amounts of Roku devices and management keeps crushing quarterly estimates. Investors in Roku are pleased this year with the performance and the chart says there is still some room to advance in 2020.

Is there another 300% to 400% gain in store for 2020? We’ll have to find out, but Roku stood out as one of the best in 2019.

Roku Chart

Roku Chart