Roblox (RBLX) closed the most recent trading day at $131.79, moving +2.58% from the previous trading session. This change outpaced the S&P 500's 0.27% gain on the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.37%.
Heading into today, shares of the online gaming platform had lost 1.74% over the past month, lagging the Consumer Discretionary sector's gain of 6.14% and the S&P 500's gain of 1.85%.
The upcoming earnings release of Roblox will be of great interest to investors. The company is expected to report EPS of -$0.44, down 18.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.63 billion, up 44.72% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of -$1.71 per share and a revenue of $5.98 billion, demonstrating changes of -18.75% and +36.98%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Roblox. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Roblox holds a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Roblox Corporation (RBLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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