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

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In the latest trading session, Roblox (RBLX - Free Report) closed at $43.30, marking a +1% move from the previous day. This move outpaced the S&P 500's daily loss of 1.06%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.08%.

Coming into today, shares of the online gaming platform had gained 12.82% in the past month. In that same time, the Consumer Discretionary sector gained 7.38%, while the S&P 500 gained 4.94%.

Investors will be hoping for strength from Roblox as it approaches its next earnings release, which is expected to be November 9, 2022. On that day, Roblox is projected to report earnings of -$0.37 per share, which would represent a year-over-year decline of 184.62%. Our most recent consensus estimate is calling for quarterly revenue of $694.88 million, up 8.94% from the year-ago period.

RBLX's full-year Zacks Consensus Estimates are calling for earnings of -$1.34 per share and revenue of $2.82 billion. These results would represent year-over-year changes of -38.14% and +3.35%, respectively.

Investors might also notice recent changes to analyst estimates for Roblox. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 9.43% lower within the past month. 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 43, which puts it in the top 18% 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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