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Roblox (RBLX) Gains But Lags Market: What You Should Know

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In the latest trading session, Roblox (RBLX - Free Report) closed at $27.75, marking a +0.04% move from the previous day. This move lagged the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.

Coming into today, shares of the online gaming platform had lost 5.13% in the past month. In that same time, the Consumer Discretionary sector lost 5.11%, while the S&P 500 gained 0.19%.

Roblox will be looking to display strength as it nears its next earnings release. On that day, Roblox is projected to report earnings of -$0.53 per share, which would represent a year-over-year decline of 6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $829.19 million, up 18.16% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.91 per share and revenue of $3.43 billion. These totals would mark changes of -23.23% and +19.4%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Roblox. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 has moved 1.22% lower. Roblox currently has a Zacks Rank of #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 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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