Robinhood Markets, Inc. (HOOD) closed at $76.35 in the latest trading session, marking a -2.74% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.96% for the day. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 0.94%.
Coming into today, shares of the company had gained 24.27% in the past month. In that same time, the Finance sector lost 1.18%, while the S&P 500 gained 0.5%.
The investment community will be paying close attention to the earnings performance of Robinhood Markets, Inc. in its upcoming release. The company's upcoming EPS is projected at $0.3, signifying a 42.86% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $887.04 million, reflecting a 30.07% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.23 per share and a revenue of $3.61 billion, demonstrating changes of +12.84% and +22.32%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Robinhood Markets, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.54% higher. Robinhood Markets, Inc. is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Robinhood Markets, Inc. is at present trading with a Forward P/E ratio of 63.82. For comparison, its industry has an average Forward P/E of 14.87, which means Robinhood Markets, Inc. is trading at a premium to the group.
One should further note that HOOD currently holds a PEG ratio of 4.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Bank was holding an average PEG ratio of 1.23 at yesterday's closing price.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 141, this industry ranks in the bottom 43% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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