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Roblox (RBLX) Gains But Lags Market: What You Should Know

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Roblox (RBLX - Free Report) closed the most recent trading day at $86.20, moving +0.44% from the previous trading session. This move lagged the S&P 500's daily gain of 0.75%.

Prior to today's trading, shares of the online gaming platform had lost 11.07% over the past month. This has lagged the Consumer Discretionary sector's gain of 10.93% and the S&P 500's gain of 2.91% in that time.

Wall Street will be looking for positivity from RBLX as it approaches its next earnings report date.

Any recent changes to analyst estimates for RBLX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 15.6% higher. RBLX is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, RBLX is currently trading at a Forward P/E ratio of 83.73. This valuation marks a premium compared to its industry's average Forward P/E of 26.41.

Also, we should mention that RBLX has a PEG ratio of 73.44. 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 Gaming was holding an average PEG ratio of 1.48 at yesterday's closing price.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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