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

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In the latest trading session, Roblox (RBLX) closed at $39.84, marking a +1.12% move from the previous day. This change outpaced the S&P 500's 0.13% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.06%.

Prior to today's trading, shares of the online gaming platform had gained 8.18% over the past month. This has outpaced the Consumer Discretionary sector's gain of 7.82% and the S&P 500's gain of 5.55% in that time.

Wall Street will be looking for positivity from Roblox as it approaches its next earnings report date. This is expected to be August 9, 2022. The company is expected to report EPS of -$0.24, up 4% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $636.61 million, down 4.34% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.04 per share and revenue of $2.76 billion. These totals would mark changes of -7.22% and +1.39%, respectively, from last year.

It is also important to note the 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant 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 161, putting it in the bottom 37% 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.

To follow RBLX in the coming trading sessions, be sure to utilize Zacks.com.

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