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Robinhood Markets, Inc. (HOOD) Rises Higher Than Market: Key Facts

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In the latest trading session, Robinhood Markets, Inc. (HOOD - Free Report) closed at $118.50, marking a +1.04% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.27%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.37%.

The company's stock has climbed by 3.22% in the past month, exceeding the Finance sector's gain of 2.38% and the S&P 500's gain of 1.85%.

Analysts and investors alike will be keeping a close eye on the performance of Robinhood Markets, Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $0.38, up 123.53% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.04 billion, indicating a 63.99% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.55 per share and a revenue of $4.01 billion, representing changes of +42.2% and +35.83%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Robinhood Markets, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

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. Over the past month, the Zacks Consensus EPS estimate has shifted 1.86% upward. Robinhood Markets, Inc. is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at valuation, Robinhood Markets, Inc. is presently trading at a Forward P/E ratio of 75.67. This signifies a premium in comparison to the average Forward P/E of 16.26 for its industry.

It is also worth noting that HOOD currently has a PEG ratio of 4.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.58.

The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 16, positioning it in the top 7% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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