In the latest trading session, Roblox (RBLX) closed at $55.12, marking a -2.8% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 1.09%, and the Nasdaq, a tech-heavy index, added 0.2%.
The online gaming platform's shares have seen an increase of 31.88% over the last month, surpassing the Consumer Discretionary sector's gain of 1.44% and the S&P 500's gain of 1.64%.
Market participants will be closely following the financial results of Roblox in its upcoming release. The company is expected to report EPS of -$0.34, up 17.07% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.59 billion, indicating a 10.79% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.44 per share and revenue of $7.48 billion. These totals would mark changes of +6.49% and +10.15%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Roblox. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.57% higher. Currently, Roblox is carrying 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 167, placing it within the bottom 33% 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.
You can find more information on all of these metrics, and much 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).