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Roblox (RBLX) Exceeds Market Returns: Some Facts to Consider

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Roblox (RBLX - Free Report) ended the recent trading session at $135.06, demonstrating a +2.29% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.59%. Elsewhere, the Dow saw an upswing of 0.65%, while the tech-heavy Nasdaq appreciated by 0.44%.

Shares of the online gaming platform have appreciated by 4.07% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 1.13%, and the S&P 500's gain of 2.72%.

The investment community will be closely monitoring the performance of Roblox in its forthcoming earnings report. On that day, Roblox is projected to report earnings of -$0.44 per share, which would represent a year-over-year decline of 18.92%. Our most recent consensus estimate is calling for quarterly revenue of $1.65 billion, up 45.93% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$1.71 per share and revenue of $6.04 billion, which would represent changes of -18.75% and +38.32%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Roblox. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.29% rise in the Zacks Consensus EPS estimate. At present, Roblox boasts 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 86, which puts it in the top 35% 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 Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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