Roblox (RBLX) Rises Higher Than Market: Key Facts

Roblox (RBLX) closed the most recent trading day at $57.63, moving +1.89% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 1.16%.

Coming into today, shares of the online gaming platform had lost 15.54% in the past month. In that same time, the Consumer Discretionary sector lost 6.69%, while the S&P 500 lost 4.99%.

Investors will be eagerly watching for the performance of Roblox in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$0.43, signifying a 34.38% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.73 billion, up 43.33% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$1.61 per share and revenue of $8.45 billion, which would represent changes of -4.55% and +24.4%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Roblox. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 has remained steady. At present, Roblox boasts a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 184, positioning it in the bottom 25% 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.

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

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This article originally published on Zacks Investment Research (zacks.com).

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