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

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In the latest trading session, Roblox (RBLX) closed at $76.98, marking a +0.17% move from the previous day. This change outpaced the S&P 500's 0.54% loss on the day.

Coming into today, shares of the online gaming platform had lost 10.45% in the past month. In that same time, the Consumer Discretionary sector lost 4.17%, while the S&P 500 gained 3.05%.

RBLX will be looking to display strength as it nears its next earnings release, which is expected to be August 16, 2021.

Investors should also note any recent changes to analyst estimates for RBLX. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RBLX currently has a Zacks Rank of #2 (Buy).

Investors should also note RBLX's current valuation metrics, including its Forward P/E ratio of 92.59. This represents a premium compared to its industry's average Forward P/E of 24.56.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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