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Roblox (RBLX) Advances While Market Declines: Some Information for Investors

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Roblox (RBLX - Free Report) ended the recent trading session at $102.65, demonstrating a +1.51% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.03%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.13%.

The online gaming platform's shares have seen an increase of 23.75% over the last month, surpassing the Consumer Discretionary sector's loss of 0.61% and the S&P 500's gain of 0.6%.

The investment community will be paying close attention to the earnings performance of Roblox in its upcoming release. It is anticipated that the company will report an EPS of -$0.38, marking a 18.75% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.19 billion, up 24.4% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$1.4 per share and a revenue of $5.36 billion, representing changes of +2.78% and +22.67%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Roblox. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 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 moved 0.64% higher. Roblox is currently sporting 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 98, finds itself in the top 40% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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