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Robinhood Markets, Inc. (HOOD) Stock Slides as Market Rises: Facts to Know Before You Trade

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Robinhood Markets, Inc. (HOOD - Free Report) ended the recent trading session at $23.31, demonstrating a -1.65% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.23%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 0.34%.

The company's stock has climbed by 27.97% in the past month, exceeding the Finance sector's loss of 0.44% and the S&P 500's gain of 3.96%.

Investors will be eagerly watching for the performance of Robinhood Markets, Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.16, showcasing a 433.33% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $612.82 million, showing a 26.09% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.61 per share and revenue of $2.4 billion. These totals would mark changes of +200% and +28.5%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Robinhood Markets, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.47% higher. Robinhood Markets, Inc. is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Robinhood Markets, Inc. is presently being traded at a Forward P/E ratio of 39.06. This valuation marks a premium compared to its industry's average Forward P/E of 17.69.

The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 12, positioning it in the top 5% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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