In the latest market close, Roblox (RBLX) reached $59.07, with a -0.72% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 1.97% for the day. Elsewhere, the Dow lost 1.69%, while the tech-heavy Nasdaq lost 2.7%.
Prior to today's trading, shares of the online gaming platform had lost 1.54% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 3.6% and the S&P 500's loss of 2.79% in that time.
The upcoming earnings release of Roblox will be of great interest to investors. The company is predicted to post an EPS of -$0.41, indicating a 4.65% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.14 billion, indicating a 23.39% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$1.49 per share and a revenue of $5.28 billion, representing changes of -3.47% and +20.78%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Roblox. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Roblox is currently sporting a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 143, this industry ranks in the bottom 44% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Roblox Corporation (RBLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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