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Roblox (RBLX) Gains But Lags Market: What You Should Know
Roblox (RBLX - Free Report) closed at $56.51 in the latest trading session, marking a +1.4% move from the prior day. The stock's change was less than the S&P 500's daily gain of 2.13%. Elsewhere, the Dow saw an upswing of 1.65%, while the tech-heavy Nasdaq appreciated by 2.61%.
The online gaming platform's shares have seen a decrease of 14.96% over the last month, not keeping up with the Consumer Discretionary sector's loss of 12.53% and the S&P 500's loss of 9.57%.
Analysts and investors alike will be keeping a close eye on the performance of Roblox in its upcoming earnings disclosure. The company is expected to report EPS of -$0.41, up 4.65% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.14 billion, indicating a 23.39% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of -$1.49 per share and a revenue of $5.28 billion, demonstrating changes of -3.47% and +20.78%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Roblox. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 138, putting it in the bottom 46% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.