Why Robinhood Markets, Inc. (HOOD) Dipped More Than Broader Market Today

Robinhood Markets, Inc. (HOOD) ended the recent trading session at $36.94, demonstrating a -0.38% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.09% for the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.1%.Prior to today's trading, shares of the company had gained 2.77% over the past month. This has outpaced the Finance sector's loss of 4.24% and the S&P 500's loss of 0.29% in that time.The upcoming earnings release of Robinhood Markets, Inc. will be of great interest to investors. It is anticipated that the company will report an EPS of $0.25, marking a 733.33% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $756.68 million, up 60.65% from the year-ago period.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.80 per share and a revenue of $2.71 billion, representing changes of +231.15% and +45.11%, respectively, from the prior year.Investors should also note any recent changes to analyst estimates for Robinhood Markets, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 8.97% higher within the past month. Robinhood Markets, Inc. currently has a Zacks Rank of #3 (Hold).In terms of valuation, Robinhood Markets, Inc. is presently being traded at a Forward P/E ratio of 46.23. For comparison, its industry has an average Forward P/E of 16.1, which means Robinhood Markets, Inc. is trading at a premium to the group.It's also important to note that HOOD currently trades at a PEG ratio of 0.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Investment Bank industry currently had an average PEG ratio of 1.35 as of yesterday's close.The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 250 industries.The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Robinhood Markets, Inc. (HOOD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks