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

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Roblox (RBLX - Free Report) closed the most recent trading day at $39.14, moving +1.4% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.37%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 1.26%.

Heading into today, shares of the online gaming platform had lost 4.71% over the past month, lagging the Consumer Discretionary sector's gain of 1.44% and the S&P 500's gain of 4.31% in that time.

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 -$0.46, down 53.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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.

It is also important to note the recent changes to analyst estimates for Roblox. These revisions help to show the ever-changing nature of 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 75, which puts it in the top 30% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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