Roblox (RBLX) closed at $100.65 in the latest trading session, marking a -4.33% move from the prior day. This change lagged the S&P 500's 0.11% loss on the day. Elsewhere, the Dow saw an upswing of 0.91%, while the tech-heavy Nasdaq depreciated by 0.82%.
Coming into today, shares of the online gaming platform had gained 16.95% in the past month. In that same time, the Consumer Discretionary sector gained 7.03%, while the S&P 500 gained 5.17%.
Analysts and investors alike will be keeping a close eye on the performance of Roblox in its upcoming earnings disclosure. On that day, Roblox is projected to report earnings of -$0.37 per share, which would represent a year-over-year decline of 15.63%. Alongside, our most recent consensus estimate is anticipating revenue of $1.21 billion, indicating a 26.32% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of -$1.38 per share and a revenue of $5.4 billion, signifying shifts of +4.17% and +23.6%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Roblox. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.2% higher. Roblox presently features a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 149, finds itself in the bottom 40% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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