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Roblox (RBLX) Laps the Stock Market: Here's Why

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Roblox (RBLX - Free Report) closed the most recent trading day at $104.78, moving +1.25% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.11% for the day. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 1.43%.

The online gaming platform's stock has climbed by 25.81% in the past month, exceeding the Consumer Discretionary sector's gain of 3.35% and the S&P 500's gain of 3.92%.

Analysts and investors alike will be keeping a close eye on the performance of Roblox in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$0.37, signifying a 15.63% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.21 billion, indicating a 26.32% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$1.38 per share and a revenue of $5.4 billion, indicating changes of +4.17% and +23.6%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Roblox. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, the Zacks Consensus EPS estimate has shifted 2.2% upward. Currently, Roblox is carrying a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 42% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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