Roblox (RBLX) closed at $39.91 in the latest trading session, marking a -0.92% move from the prior day. This change lagged the S&P 500's 0.08% gain on the day. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 0.61%.
Heading into today, shares of the online gaming platform had gained 2.62% over the past month, lagging the Consumer Discretionary sector's gain of 4.16% and the S&P 500's gain of 6.1% 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 -$0.46, down 53.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $784.91 million, up 22.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.82 per share and revenue of $3.44 billion. These totals would mark changes of -17.42% and +19.6%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Roblox. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 0.22% lower within the past month. Roblox is currently a Zacks Rank #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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