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Why Robinhood Markets, Inc. (HOOD) Dipped More Than Broader Market Today
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Robinhood Markets, Inc. (HOOD - Free Report) ended the recent trading session at $97.22, demonstrating a -5.85% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.1%. On the other hand, the Dow registered a gain of 0.35%, and the technology-centric Nasdaq decreased by 0.43%.
Coming into today, shares of the company had gained 39.36% in the past month. In that same time, the Finance sector gained 2.81%, while the S&P 500 lost 1.34%.
Market participants will be closely following the financial results of Robinhood Markets, Inc. in its upcoming release. The company is predicted to post an EPS of $0.41, indicating a 2.38% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, up 21.49% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.8 per share and revenue of $4.98 billion. These totals would mark changes of -12.2% and +11.34%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Robinhood Markets, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 0.48% downward. As of now, Robinhood Markets, Inc. holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Robinhood Markets, Inc. is currently exchanging hands at a Forward P/E ratio of 57.32. This represents a premium compared to its industry average Forward P/E of 14.77.
We can additionally observe that HOOD currently boasts a PEG ratio of 1.9. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.1.
The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 103, finds itself in the top 43% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
View the Zacks #1 Rank List
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Why Robinhood Markets, Inc. (HOOD) Dipped More Than Broader Market Today
Robinhood Markets, Inc. (HOOD - Free Report) ended the recent trading session at $97.22, demonstrating a -5.85% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.1%. On the other hand, the Dow registered a gain of 0.35%, and the technology-centric Nasdaq decreased by 0.43%.
Coming into today, shares of the company had gained 39.36% in the past month. In that same time, the Finance sector gained 2.81%, while the S&P 500 lost 1.34%.
Market participants will be closely following the financial results of Robinhood Markets, Inc. in its upcoming release. The company is predicted to post an EPS of $0.41, indicating a 2.38% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, up 21.49% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.8 per share and revenue of $4.98 billion. These totals would mark changes of -12.2% and +11.34%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Robinhood Markets, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 0.48% downward. As of now, Robinhood Markets, Inc. holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Robinhood Markets, Inc. is currently exchanging hands at a Forward P/E ratio of 57.32. This represents a premium compared to its industry average Forward P/E of 14.77.
We can additionally observe that HOOD currently boasts a PEG ratio of 1.9. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.1.
The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 103, finds itself in the top 43% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.