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Roblox (RBLX) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Roblox (RBLX) closed at $43.36, marking a -0.76% move from the previous day. This move lagged the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.

Prior to today's trading, shares of the online gaming platform had gained 6.87% over the past month. This has outpaced the Consumer Discretionary sector's loss of 7.98% and the S&P 500's loss of 3.9% in that time.

Roblox will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.42, down 55.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $768.79 million, up 21.8% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.84 per share and revenue of $3.4 billion, which would represent changes of -18.71% and +18.43%, respectively, from the prior year.

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Any recent changes to analyst estimates for Roblox should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 3.26% higher within the past month. Roblox currently has a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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 follow all of these stock-moving metrics, and many more, on Zacks.com.

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Roblox Corporation (RBLX) : Free Stock Analysis Report

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