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Robinhood Markets, Inc. (HOOD) Soars 5.2%: Is Further Upside Left in the Stock?

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Robinhood Markets, Inc. (HOOD - Free Report) shares soared 5.2% in the last trading session to close at $18.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 28.3% gain over the past four weeks.

Shares of HOOD touched a 52-week high of $19.23 on a couple of upbeat developments. The company reported an impressive increase in trading volume across all asset categories in February. Also, last month, the company’s assets under custody grew 16% from January to $118.7 billion.

Further, Bernstein initiated coverage of Robinhood with an outperform rating. In a note, the research firm cited "a monster of a crypto cycle over 2024-25" as the main reason behind its bullish stance on HOOD.

This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +105.3%. Revenues are expected to be $496.68 million, up 12.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Robinhood Markets, Inc., the consensus EPS estimate for the quarter has been revised 140% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on HOOD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Robinhood Markets, Inc. is part of the Zacks Financial - Investment Bank industry. Evercore (EVR - Free Report) , another stock in the same industry, closed the last trading session 2.4% lower at $189.97. EVR has returned 6.5% in the past month.

For Evercore, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.06. This represents a change of -4.6% from what the company reported a year ago. Evercore currently has a Zacks Rank of #2 (Buy).


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