In the latest close session, Roblox (RBLX) was up +2.17% at $97.17. This move outpaced the S&P 500's daily loss of 1.13%. Elsewhere, the Dow lost 1.79%, while the tech-heavy Nasdaq lost 1.3%.
The online gaming platform's stock has climbed by 17.75% in the past month, exceeding the Consumer Discretionary sector's gain of 3.54% and the S&P 500's gain of 3.55%.
The investment community will be closely monitoring the performance of Roblox in its forthcoming earnings report. The company's upcoming EPS is projected at -$0.37, signifying a 15.63% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.19 billion, indicating a 24.4% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$1.4 per share and revenue of $5.36 billion, indicating changes of +2.78% and +22.67%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Roblox. Recent revisions tend to reflect the latest near-term business trends. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.64% higher. Roblox is currently sporting a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 137, which puts it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Roblox Corporation (RBLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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