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

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Roblox (RBLX - Free Report) closed at $35.40 in the latest trading session, marking a +1.67% move from the prior day. This change outpaced the S&P 500's 0.75% loss on the day. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Heading into today, shares of the online gaming platform had lost 23.52% over the past month, lagging the Consumer Discretionary sector's loss of 10.69% and the S&P 500's loss of 8.4% in that time.

Investors will be hoping for strength from Roblox as it approaches its next earnings release. In that report, analysts expect Roblox to post earnings of -$0.31 per share. This would mark a year-over-year decline of 138.46%. Our most recent consensus estimate is calling for quarterly revenue of $688.55 million, up 7.95% from the year-ago period.

RBLX's full-year Zacks Consensus Estimates are calling for earnings of -$1.23 per share and revenue of $2.8 billion. These results would represent year-over-year changes of -26.8% and +2.75%, respectively.

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 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.

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 0.23% higher. Roblox is holding a Zacks Rank of #3 (Hold) right now.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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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