Roblox (RBLX) Exceeds Market Returns: Some Facts to Consider
Roblox (RBLX) closed the most recent trading day at $68.43, moving +1.88% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.92% for the day. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 2.03%.
The the stock of online gaming platform has risen by 14.86% in the past month, leading the Consumer Discretionary sector's gain of 1.7% and the S&P 500's gain of 0.81%.
The upcoming earnings release of Roblox will be of great interest to investors. The company's earnings report is expected on February 6, 2025. The company is expected to report EPS of -$0.46, up 11.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.37 billion, up 21.64% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Roblox. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% higher. As of now, Roblox holds a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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
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