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Roblox (RBLX) Gains As Market Dips: What You Should Know

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In the latest trading session, Roblox (RBLX - Free Report) closed at $27.91, marking a +0.58% move from the previous day. This move outpaced the S&P 500's daily loss of 1.22%. Elsewhere, the Dow lost 0.83%, while the tech-heavy Nasdaq lost 1.56%.

Coming into today, shares of the online gaming platform had lost 0.36% in the past month. In that same time, the Consumer Discretionary sector lost 3.96%, while the S&P 500 gained 0.54%.

Roblox will be looking to display strength as it nears its next earnings release. On that day, Roblox is projected to report earnings of -$0.53 per share, which would represent a year-over-year decline of 6%. Our most recent consensus estimate is calling for quarterly revenue of $829.19 million, up 18.16% from the year-ago period.

RBLX's full-year Zacks Consensus Estimates are calling for earnings of -$1.91 per share and revenue of $3.43 billion. These results would represent year-over-year changes of -23.23% and +19.4%, respectively.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Roblox is holding a Zacks Rank of #3 (Hold) right now.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% 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.

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


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