Robinhood Markets, Inc. (HOOD) closed at $127.22 in the latest trading session, marking a -3.5% move from the prior day. This move lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, lost 0.93%.
The stock of company has risen by 4.47% in the past month, leading the Finance sector's loss of 2.07% and the S&P 500's gain of 1.13%.
Analysts and investors alike will be keeping a close eye on the performance of Robinhood Markets, Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2025. The company's earnings per share (EPS) are projected to be $0.49, reflecting a 188.24% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.18 billion, up 85.46% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.76 per share and revenue of $4.21 billion. These totals would mark changes of +61.47% and +42.74%, respectively, from last year.
Any recent changes to analyst estimates for Robinhood Markets, Inc. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 13.93% upward. Right now, Robinhood Markets, Inc. possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Robinhood Markets, Inc. is presently being traded at a Forward P/E ratio of 74.98. This denotes a premium relative to the industry average Forward P/E of 15.66.
Also, we should mention that HOOD has a PEG ratio of 3.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.33.
The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 23, finds itself in the top 10% echelons of all 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.
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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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