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Robinhood Markets, Inc. (HOOD) Exceeds Market Returns: Some Facts to Consider

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The most recent trading session ended with Robinhood Markets, Inc. (HOOD - Free Report) standing at $22.63, reflecting a +1.34% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.08%.

The company's stock has climbed by 15.28% in the past month, exceeding the Finance sector's loss of 0.26% and the S&P 500's gain of 1.21%.

Analysts and investors alike will be keeping a close eye on the performance of Robinhood Markets, Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on October 30, 2024. It is anticipated that the company will report an EPS of $0.20, marking a 322.22% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $672.16 million, indicating a 43.93% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $0.76 per share and a revenue of $2.64 billion, demonstrating changes of +224.59% and +41.42%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Robinhood Markets, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Robinhood Markets, Inc. boasts a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Robinhood Markets, Inc. has a Forward P/E ratio of 29.3 right now. This signifies a premium in comparison to the average Forward P/E of 17.6 for its industry.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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