In the latest trading session, Roblox (RBLX) closed at $41.82, marking a -3.53% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 2.65%. Elsewhere, the Dow lost 1.35%, while the tech-heavy Nasdaq lost 4.18%.
Coming into today, shares of the online gaming platform had lost 3.19% in the past month. In that same time, the Consumer Discretionary sector lost 0.12%, while the S&P 500 gained 5.47%.
The investment community will be paying close attention to the earnings performance of Roblox in its upcoming release. It is anticipated that the company will report an EPS of -$0.34, marking a 17.07% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.59 billion, showing a 10.69% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of -$1.45 per share and a revenue of $7.48 billion, demonstrating changes of +5.84% and +10.13%, respectively, from the preceding year.
Any recent changes to analyst estimates for Roblox should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Roblox boasts a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 163, placing it within the bottom 34% of over 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Roblox Corporation (RBLX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).