In the latest close session, Roblox (RBLX) was down 3.6% at $55.43. This change lagged the S&P 500's daily gain of 2.51%. Elsewhere, the Dow gained 2.85%, while the tech-heavy Nasdaq added 2.8%.
The online gaming platform's shares have seen a decrease of 2.26% over the last month, surpassing the Consumer Discretionary sector's loss of 4.12% and falling behind the S&P 500's loss of 1.66%.
Investors will be eagerly watching for the performance of Roblox in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.43, marking a 34.38% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.73 billion, up 43.33% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of -$1.61 per share and a revenue of $8.45 billion, signifying shifts of -4.55% and +24.4%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Roblox. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Roblox is currently sporting a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 143, positioning it in the bottom 42% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Roblox Corporation (RBLX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).