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Robinhood Markets, Inc. (HOOD) Suffers a Larger Drop Than the General Market: Key Insights

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Robinhood Markets, Inc. (HOOD - Free Report) closed the most recent trading day at $131.44, moving -2.02% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.63%. Elsewhere, the Dow lost 0.65%, while the tech-heavy Nasdaq lost 0.47%.

Heading into today, shares of the company had gained 13.07% over the past month, outpacing the Finance sector's loss of 0.83% and the S&P 500's gain of 0.92%.

Analysts and investors alike will be keeping a close eye on the performance of Robinhood Markets, Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2025. On that day, Robinhood Markets, Inc. is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 188.24%. Our most recent consensus estimate is calling for quarterly revenue of $1.16 billion, up 81.66% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.76 per share and revenue of $4.17 billion. These totals would mark changes of +61.47% and +41.29%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Robinhood Markets, Inc. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, the Zacks Consensus EPS estimate has moved 13.56% higher. Robinhood Markets, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

In the context of valuation, Robinhood Markets, Inc. is at present trading with a Forward P/E ratio of 76.29. Its industry sports an average Forward P/E of 16.22, so one might conclude that Robinhood Markets, Inc. is trading at a premium comparatively.

Meanwhile, HOOD's PEG ratio is currently 3.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.4.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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