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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 $42.72 in the latest trading session, marking a -1.09% move from the prior day. This change lagged the S&P 500's 0.7% loss on the day. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq added 2.77%.

Heading into today, shares of the online gaming platform had gained 21.08% over the past month, outpacing the Consumer Discretionary sector's loss of 8.51% and the S&P 500's loss of 5.06% in that time.

Investors will be hoping for strength from Roblox as it approaches its next earnings release. The company is expected to report EPS of -$0.44, down 62.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $766.36 million, up 21.41% from the year-ago period.

RBLX's full-year Zacks Consensus Estimates are calling for earnings of -$1.86 per share and revenue of $3.4 billion. These results would represent year-over-year changes of -20% and +18.38%, respectively.

Any recent changes to analyst estimates for Roblox should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 5.77% higher. Roblox currently has 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 76, which puts it in the top 31% 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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