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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 $41.72 in the latest trading session, marking a -0.9% move from the prior day. This move lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 9.78%.

Prior to today's trading, shares of the online gaming platform had gained 1.86% over the past month. This has lagged the Consumer Discretionary sector's gain of 4.28% and the S&P 500's gain of 4.16% in that time.

Roblox will be looking to display strength as it nears 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%. 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.

Investors might also notice recent changes to analyst estimates for Roblox. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Roblox is currently a Zacks Rank #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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