Robinhood Markets, Inc. (HOOD) closed at $73.84 in the latest trading session, marking a -1.39% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 0.24%, and the technology-dominated Nasdaq saw an increase of 0.24%.
Shares of the company have appreciated by 21.97% over the course of the past month, outperforming the Finance sector's gain of 2.88%, and the S&P 500's gain of 6.6%.
The upcoming earnings release of Robinhood Markets, Inc. will be of great interest to investors. In that report, analysts expect Robinhood Markets, Inc. to post earnings of $0.3 per share. This would mark year-over-year growth of 42.86%. In the meantime, our current consensus estimate forecasts the revenue to be $881.87 million, indicating a 29.31% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.23 per share and revenue of $3.61 billion, which would represent changes of +12.84% and +22.32%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Robinhood Markets, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 past month, the Zacks Consensus EPS estimate has moved 0.27% lower. At present, Robinhood Markets, Inc. boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Robinhood Markets, Inc. is presently trading at a Forward P/E ratio of 60.88. For comparison, its industry has an average Forward P/E of 15.05, which means Robinhood Markets, Inc. is trading at a premium to the group.
Also, we should mention that HOOD has a PEG ratio of 4.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. HOOD's industry had an average PEG ratio of 1.23 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 38% echelons of all 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.
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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