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Roblox (RBLX) Surpasses Market Returns: Some Facts Worth Knowing

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The latest trading session saw Roblox (RBLX - Free Report) ending at $41.18, denoting a +1.91% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.76%. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 1.12%.

Coming into today, shares of the online gaming platform had lost 11.61% in the past month. In that same time, the Consumer Discretionary sector gained 1.72%, while the S&P 500 gained 2.5%.

The investment community will be closely monitoring the performance of Roblox in its forthcoming earnings report. The company is scheduled to release its earnings on February 7, 2024. On that day, Roblox is projected to report earnings of -$0.57 per share, which would represent a year-over-year decline of 18.75%. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, up 19.6% from the prior-year quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Roblox. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. Roblox is currently sporting a Zacks Rank of #4 (Sell).

The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 107, positioning it in the top 43% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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