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

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In the latest trading session, Roblox (RBLX - Free Report) closed at $46.02, marking a -0.48% move from the previous day. This move lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the online gaming platform had gained 2.21% in the past month. In that same time, the Consumer Discretionary sector lost 2.57%, while the S&P 500 gained 3.75%.

Wall Street will be looking for positivity from Roblox as it approaches its next earnings report date. In that report, analysts expect Roblox to post earnings of -$0.11 per share. This would mark year-over-year growth of 76.09%. Meanwhile, our latest consensus estimate is calling for revenue of $644.27 million, down 1.23% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.92 per share and revenue of $2.92 billion, which would represent changes of +5.15% and +6.98%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Roblox. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 1.65% higher. Roblox is holding a Zacks Rank of #3 (Hold) right now.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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