Robinhood Markets, Inc. (HOOD) closed at $139.14 in the latest trading session, marking a -2.82% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.34%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%.
The company's shares have seen an increase of 41.99% over the last month, surpassing the Finance sector's gain of 1.52% and the S&P 500's gain of 3.54%.
Analysts and investors alike will be keeping a close eye on the performance of Robinhood Markets, Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $0.41, up 141.18% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.1 billion, up 73.43% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for Robinhood Markets, Inc. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 3.55% rise in the Zacks Consensus EPS estimate. Robinhood Markets, Inc. currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, Robinhood Markets, Inc. is currently exchanging hands at a Forward P/E ratio of 89.21. This signifies a premium in comparison to the average Forward P/E of 17.08 for its industry.
It's also important to note that HOOD currently trades at a PEG ratio of 5.1. 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. The average PEG ratio for the Financial - Investment Bank industry stood at 1.65 at the close of the market yesterday.
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 Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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