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

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Roblox (RBLX - Free Report) closed at $37.92 in the latest trading session, marking a +1.96% move from the prior day. This move lagged the S&P 500's daily gain of 2.6%. Meanwhile, the Dow gained 2.83%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Coming into today, shares of the online gaming platform had lost 17.48% in the past month. In that same time, the Consumer Discretionary sector lost 15.77%, while the S&P 500 lost 12.9%.

Wall Street will be looking for positivity from Roblox as it approaches its next earnings report date. The company is expected to report EPS of -$0.31, down 138.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $688.55 million, up 7.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.23 per share and revenue of $2.8 billion, which would represent changes of -26.8% and +2.75%, 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 0.23% higher within the past month. Roblox is currently sporting a Zacks Rank of #2 (Buy).

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% 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.

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


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