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Why Robinhood Markets, Inc. (HOOD) Dipped More Than Broader Market Today

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Robinhood Markets, Inc. (HOOD - Free Report) closed the latest trading day at $22.39, indicating a -1.67% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.19%. At the same time, the Dow lost 0.7%, and the tech-heavy Nasdaq gained 0.04%.

The company's shares have seen an increase of 6.6% over the last month, surpassing the Finance sector's gain of 1.52% and the S&P 500's gain of 1.95%.

Market participants will be closely following the financial results of Robinhood Markets, Inc. in its upcoming release. The company is forecasted to report an EPS of $0.20, showcasing a 322.22% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $681.5 million, reflecting a 45.93% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.76 per share and a revenue of $2.66 billion, signifying shifts of +224.59% and +42.37%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Robinhood Markets, Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has remained steady. Currently, Robinhood Markets, Inc. is carrying a Zacks Rank of #2 (Buy).

In terms of valuation, Robinhood Markets, Inc. is presently being traded at a Forward P/E ratio of 29.88. This denotes a premium relative to the industry's average Forward P/E of 17.3.

The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 34% echelons 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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