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Roblox (RBLX) Dips More Than Broader Markets: What You Should Know

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Roblox (RBLX - Free Report) closed at $35.93 in the latest trading session, marking a -1.35% move from the prior day. This change lagged the S&P 500's 0.3% loss on the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Prior to today's trading, shares of the online gaming platform had gained 14.49% over the past month. This has outpaced the Consumer Discretionary sector's loss of 0.5% and the S&P 500's loss of 0.62% in that time.

Roblox will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.24, up 4% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $636.61 million, down 4.34% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.04 per share and revenue of $2.76 billion, which would represent changes of -7.22% and +1.39%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Roblox. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 3.56% higher. Roblox is currently a Zacks Rank #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 21% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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