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Robinhood Markets, Inc. (HOOD) Laps the Stock Market: Here's Why

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Robinhood Markets, Inc. (HOOD - Free Report) closed the most recent trading day at $9.68, moving +1.57% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.81% for the day. On the other hand, the Dow registered a gain of 0.39%, and the technology-centric Nasdaq increased by 1.35%.

Prior to today's trading, shares of the company had lost 11.92% over the past month. This has lagged the Finance sector's loss of 6.45% and the S&P 500's loss of 6.19% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Robinhood Markets, Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.01, showcasing a 105% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $475.59 million, up 31.74% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of -$0.50 per share and a revenue of $1.9 billion, demonstrating changes of +57.26% and +20.28%, respectively, from the preceding year.

Any recent changes to analyst estimates for Robinhood Markets, Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.2% lower. Currently, Robinhood Markets, Inc. is carrying a Zacks Rank of #3 (Hold).

The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 37% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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