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Robinhood Markets, Inc. (HOOD) Declines More Than Market: Some Information for Investors

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Robinhood Markets, Inc. (HOOD - Free Report) closed the latest trading day at $21.73, indicating a -0.59% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.25%. On the other hand, the Dow registered a gain of 0.77%, and the technology-centric Nasdaq decreased by 0.79%.

Shares of the company have appreciated by 11.19% over the course of the past month, outperforming the Finance sector's loss of 1.89% and the S&P 500's gain of 3.59%.

Investors will be eagerly watching for the performance of Robinhood Markets, Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.16, signifying a 433.33% increase compared to the same quarter of the previous 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.

HOOD's full-year Zacks Consensus Estimates are calling for earnings of $0.61 per share and revenue of $2.4 billion. These results would represent year-over-year changes of +200% and +28.5%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Robinhood Markets, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.47% upward. Right now, Robinhood Markets, Inc. possesses a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Robinhood Markets, Inc. has a Forward P/E ratio of 36.03 right now. This represents a premium compared to its industry's average Forward P/E of 18.17.

The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 29, placing it within the top 12% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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