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

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Roblox (RBLX - Free Report) closed at $82.98 in the latest trading session, marking a +0.47% move from the prior day. This move outpaced the S&P 500's daily loss of 0.04%.

Prior to today's trading, shares of the online gaming platform had gained 9.8% over the past month. This has outpaced the Consumer Discretionary sector's loss of 0.21% and the S&P 500's gain of 1.35% in that time.

RBLX will be looking to display strength as it nears its next earnings release.

It is also important to note the recent changes to analyst estimates for RBLX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 23.15% higher. RBLX is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, RBLX is holding a Forward P/E ratio of 93.15. This represents a premium compared to its industry's average Forward P/E of 25.67.

It is also worth noting that RBLX currently has a PEG ratio of 81.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Gaming was holding an average PEG ratio of 1.45 at yesterday's closing price.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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