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

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Roblox (RBLX - Free Report) closed at $40.63 in the latest trading session, marking a +1.8% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.22%. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 4.63%.

Prior to today's trading, shares of the online gaming platform had lost 4.59% over the past month. This has lagged the Consumer Discretionary sector's gain of 4.61% and the S&P 500's gain of 6.22% in that time.

Investors will be hoping for strength from Roblox as it approaches its next earnings release. On that day, Roblox is projected to report earnings of -$0.46 per share, which would represent a year-over-year decline of 53.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $784.91 million, up 22.66% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.82 per share and revenue of $3.44 billion, which would represent changes of -17.42% and +19.6%, respectively, from the prior year.

Any recent changes to analyst estimates for Roblox should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% lower. 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 71, which puts it in the top 29% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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