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Why the Market Dipped But Roblox (RBLX) Gained Today

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Roblox (RBLX - Free Report) closed the most recent trading day at $40.65, moving +0.64% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.3%.

The the stock of online gaming platform has fallen by 8.5% in the past month, lagging the Consumer Discretionary sector's gain of 2.42% and the S&P 500's gain of 4.42%.

The upcoming earnings release of Roblox will be of great interest to investors. On that day, Roblox is projected to report earnings of -$0.54 per share, which would represent a year-over-year decline of 22.73%. Meanwhile, our latest consensus estimate is calling for revenue of $930.43 million, up 20.24% from the prior-year quarter.

RBLX's full-year Zacks Consensus Estimates are calling for earnings of -$2.10 per share and revenue of $4.23 billion. These results would represent year-over-year changes of -12.3% and +20.08%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Roblox. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.3% decrease. Currently, Roblox is carrying a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 42% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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