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

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Roblox (RBLX - Free Report) closed at $84.69 in the latest trading session, marking a -0.46% move from the prior day. This change lagged the S&P 500's 0.25% gain on the day.

Heading into today, shares of the online gaming platform had gained 1.26% over the past month, outpacing the Consumer Discretionary sector's loss of 2.82% and lagging the S&P 500's gain of 1.65% in that time.

Investors will be hoping for strength from RBLX as it approaches 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 typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. RBLX currently has a Zacks Rank of #3 (Hold).

Digging into valuation, RBLX currently has a Forward P/E ratio of 102.51. This valuation marks a premium compared to its industry's average Forward P/E of 22.64.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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