Robinhood Markets, Inc. (HOOD) closed at $117.16 in the latest trading session, marking a +1.17% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.79%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 1.38%.
Prior to today's trading, shares of the company had lost 2% lagged the Finance sector's gain of 4.09% and the S&P 500's gain of 0.87%.
Market participants will be closely following the financial results of Robinhood Markets, Inc. in its upcoming release. On that day, Robinhood Markets, Inc. is projected to report earnings of $0.57 per share, which would represent year-over-year growth of 5.56%. Alongside, our most recent consensus estimate is anticipating revenue of $1.28 billion, indicating a 26.45% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.96 per share and revenue of $4.46 billion, which would represent changes of +79.82% and +51.19%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Robinhood Markets, Inc. 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, 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, there's been a 0.51% rise in the Zacks Consensus EPS estimate. Right now, Robinhood Markets, Inc. possesses a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Robinhood Markets, Inc. has a Forward P/E ratio of 59.13 right now. Its industry sports an average Forward P/E of 17.85, so one might conclude that Robinhood Markets, Inc. is trading at a premium comparatively.
Meanwhile, HOOD's PEG ratio is currently 2.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial - Investment Bank industry had an average PEG ratio of 1.07 as trading concluded yesterday.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 29, positioning it in the top 12% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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