In the latest close session, Robinhood Markets, Inc. (HOOD) was down 3.27% at $122.65. The stock fell short of the S&P 500, which registered a loss of 0.5% for the day. On the other hand, the Dow registered a loss of 0.38%, and the technology-centric Nasdaq decreased by 0.5%.
Shares of the company have appreciated by 23.2% over the course of the past month, outperforming the Finance sector's gain of 1.4%, and the S&P 500's gain of 2.74%.
The investment community will be paying close attention to the earnings performance of Robinhood Markets, Inc. in its upcoming release. The company is predicted to post an EPS of $0.41, indicating a 141.18% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.1 billion, up 73.43% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.61 per share and a revenue of $4.08 billion, indicating changes of +47.71% and +38.16%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Robinhood Markets, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 3.55% higher. Robinhood Markets, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Robinhood Markets, Inc. is currently exchanging hands at a Forward P/E ratio of 79. For comparison, its industry has an average Forward P/E of 17.03, which means Robinhood Markets, Inc. is trading at a premium to the group.
Also, we should mention that HOOD has a PEG ratio of 4.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 1.65.
The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 29, placing it within the top 12% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Robinhood Markets, Inc. (HOOD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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