Why Roblox (RBLX) Dipped More Than Broader Market Today

The latest trading session saw Roblox (RBLX) ending at $57.92, denoting a -0.31% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.33%.Shares of the online gaming platform have depreciated by 8.71% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 8.76% and lagging the S&P 500's loss of 7.48%.The upcoming earnings release of Roblox will be of great interest to investors. On that day, Roblox is projected to report earnings of -$0.41 per share, which would represent year-over-year growth of 4.65%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.14 billion, indicating a 23.39% increase compared to the same quarter of the previous year.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$1.49 per share and a revenue of $5.28 billion, indicating changes of -3.47% and +20.78%, respectively, from the former year.Investors should also take note of any recent adjustments to analyst estimates for Roblox. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's 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, 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 remained stagnant. At present, Roblox boasts a Zacks Rank of #3 (Hold).The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 43% 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.You can find more information on all of these metrics, and much more, on Zacks.com.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Roblox Corporation (RBLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks