Robinhood Markets, Inc. (HOOD) closed at $87.07 in the latest trading session, marking a -3.16% move from the prior day. This change lagged the S&P 500's 0.84% loss on the day. Elsewhere, the Dow saw a downswing of 0.34%, while the tech-heavy Nasdaq depreciated by 1.43%.
The stock of company has fallen by 27.05% in the past month, lagging the Finance sector's gain of 1.16% and the S&P 500's gain of 1.8%.
Investors will be eagerly watching for the performance of Robinhood Markets, Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 10, 2026. The company's upcoming EPS is projected at $0.62, signifying a 14.81% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.32 billion, indicating a 30.51% upward movement from the same quarter last year.
HOOD's full-year Zacks Consensus Estimates are calling for earnings of $2.02 per share and revenue of $4.52 billion. These results would represent year-over-year changes of +85.32% and 0%, respectively.
It is also important to note the recent changes to analyst estimates for Robinhood Markets, Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.38% increase. Robinhood Markets, Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Robinhood Markets, Inc. is presently being traded at a Forward P/E ratio of 36.24. Its industry sports an average Forward P/E of 16.16, so one might conclude that Robinhood Markets, Inc. is trading at a premium comparatively.
It is also worth noting that HOOD currently has a PEG ratio of 1.4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 1.14.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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