In the latest close session, Robinhood Markets, Inc. (HOOD) was down 1.23% at $121.73. The stock's performance was behind the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.99%, and the tech-heavy Nasdaq gained 0.65%.
The company's stock has dropped by 9.67% in the past month, falling short of the Finance sector's gain of 2.85% and the S&P 500's gain of 0.59%.
The investment community will be closely monitoring the performance of Robinhood Markets, Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on February 10, 2026. The company is predicted to post an EPS of $0.58, indicating a 7.41% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.29 billion, indicating a 27.08% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2 per share and revenue of $4.48 billion, which would represent changes of +83.49% and 0%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Robinhood Markets, Inc. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 moved 6.02% higher. Robinhood Markets, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Robinhood Markets, Inc. is holding a Forward P/E ratio of 51.32. This valuation marks a premium compared to its industry average Forward P/E of 16.54.
One should further note that HOOD currently holds a PEG ratio of 1.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.08.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 50, positioning it in the top 21% 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.
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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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