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Roblox (RBLX) Increases Yet Falls Behind Market: What Investors Need to Know

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Roblox (RBLX - Free Report) closed the latest trading day at $31.84, indicating a +0.09% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 1.05%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 1.64%.

Shares of the online gaming platform have appreciated by 11.93% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 2.92% and the S&P 500's loss of 2.21%.

Investors will be eagerly watching for the performance of Roblox in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 8, 2023. The company's upcoming EPS is projected at -$0.52, signifying a 4% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $828.84 million, indicating a 18.12% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$1.90 per share and a revenue of $3.43 billion, representing changes of -22.58% and +19.46%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Roblox. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.5% increase. Roblox presently features a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank is ordered 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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