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

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Roblox (RBLX - Free Report) closed at $33.18 in the latest trading session, marking a +0.85% move from the prior day. This change outpaced the S&P 500's 0.34% gain on the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 8.98%.

Prior to today's trading, shares of the online gaming platform had lost 0.69% over the past month. This has lagged the Consumer Discretionary sector's gain of 5.18% and the S&P 500's gain of 1% in that time.

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 -$0.51 per share. This would mark a year-over-year decline of 104%. Meanwhile, our latest consensus estimate is calling for revenue of $858.41 million, up 11.46% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Roblox. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.28% lower within the past month. Roblox is currently sporting a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% 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.

To follow RBLX in the coming trading sessions, be sure to utilize Zacks.com.


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