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Robinhood Markets, Inc. (HOOD) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest trading session, Robinhood Markets, Inc. (HOOD - Free Report) closed at $122.70, marking a -1.25% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.
The company's stock has climbed by 10.85% in the past month, exceeding the Finance sector's loss of 2.02% and the S&P 500's gain of 1.26%.
The investment community will be paying close attention to the earnings performance of Robinhood Markets, Inc. in its upcoming release. The company is expected to report EPS of $0.53, down 13.11% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.38 billion, reflecting a 8.15% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.15 per share and a revenue of $5.23 billion, indicating changes of +4.88% and +16.96%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Robinhood Markets, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.33% upward. Robinhood Markets, Inc. is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Robinhood Markets, Inc. currently has a Forward P/E ratio of 57.75. Its industry sports an average Forward P/E of 13.24, so one might conclude that Robinhood Markets, Inc. is trading at a premium comparatively.
Meanwhile, HOOD's PEG ratio is currently 2.48. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 39% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Robinhood Markets, Inc. (HOOD) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, Robinhood Markets, Inc. (HOOD - Free Report) closed at $122.70, marking a -1.25% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.
The company's stock has climbed by 10.85% in the past month, exceeding the Finance sector's loss of 2.02% and the S&P 500's gain of 1.26%.
The investment community will be paying close attention to the earnings performance of Robinhood Markets, Inc. in its upcoming release. The company is expected to report EPS of $0.53, down 13.11% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.38 billion, reflecting a 8.15% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.15 per share and a revenue of $5.23 billion, indicating changes of +4.88% and +16.96%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Robinhood Markets, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.33% upward. Robinhood Markets, Inc. is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Robinhood Markets, Inc. currently has a Forward P/E ratio of 57.75. Its industry sports an average Forward P/E of 13.24, so one might conclude that Robinhood Markets, Inc. is trading at a premium comparatively.
Meanwhile, HOOD's PEG ratio is currently 2.48. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 39% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.