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

Roblox (RBLX) closed at $87 in the latest trading session, marking a -0.39% move from the prior day. This change lagged the S&P 500's daily gain of 0.33%.

Heading into today, shares of the online gaming platform had lost 10.39% over the past month, lagging the Consumer Discretionary sector's gain of 1.42% and the S&P 500's gain of 1.74% in that time.

RBLX will be looking to display strength as it nears its next earnings release.

It is also important to note the recent changes to analyst estimates for RBLX. Recent revisions tend to reflect the latest near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 23.15% higher. RBLX is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that RBLX has a Forward P/E ratio of 98.5 right now. For comparison, its industry has an average Forward P/E of 25.72, which means RBLX is trading at a premium to the group.

Investors should also note that RBLX has a PEG ratio of 86.41 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Gaming was holding an average PEG ratio of 1.5 at yesterday's closing price.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% of all 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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