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Roblox (RBLX) Dips More Than Broader Markets: What You Should Know

·2 min read

In the latest trading session, Roblox (RBLX) closed at $36.41, marking a -1.89% move from the previous day. This change lagged the S&P 500's 1.13% loss on the day. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.14%.

Coming into today, shares of the online gaming platform had lost 10.58% in the past month. In that same time, the Consumer Discretionary sector lost 7.02%, while the S&P 500 lost 7.59%.

Wall Street will be looking for positivity from Roblox as it approaches its next earnings report date. The company is expected to report EPS of -$0.31, down 138.46% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $688.55 million, up 7.95% from the year-ago period.

RBLX's full-year Zacks Consensus Estimates are calling for earnings of -$1.23 per share and revenue of $2.8 billion. These results would represent year-over-year changes of -26.8% and +2.75%, respectively.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.23% higher within the past month. Roblox currently has a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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Roblox Corporation (RBLX) : Free Stock Analysis Report
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