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Roblox (RBLX) Stock Sinks As Market Gains: What You Should Know

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Roblox (RBLX - Free Report) closed at $80.57 in the latest trading session, marking a -1.32% move from the prior day. This move lagged the S&P 500's daily gain of 0.6%.

Coming into today, shares of the online gaming platform had lost 5.5% in the past month. In that same time, the Consumer Discretionary sector lost 4.9%, while the S&P 500 gained 1.21%.

Investors will be hoping for strength from RBLX as it approaches its next earnings release, which is expected to be August 16, 2021.

Investors should also note any recent changes to analyst estimates for RBLX. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. RBLX currently has a Zacks Rank of #3 (Hold).

In terms of valuation, RBLX is currently trading at a Forward P/E ratio of 98.37. This represents a premium compared to its industry's average Forward P/E of 23.18.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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