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) closed at $92.33, marking a -1.39% move from the previous day. This change lagged the S&P 500's daily loss of 0.11%. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, lost 0.82%.

The company's stock has climbed by 37.73% in the past month, exceeding the Finance sector's gain of 3.03% and the S&P 500's gain of 5.17%.

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Investors will be eagerly watching for the performance of Robinhood Markets, Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.29, signifying a 38.10% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $887.04 million, up 30.07% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.23 per share and a revenue of $3.61 billion, representing changes of +12.84% and +22.32%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Robinhood Markets, Inc. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Over the past month, there's been a 0.54% rise in the Zacks Consensus EPS estimate. Right now, Robinhood Markets, Inc. possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Robinhood Markets, Inc. is presently being traded at a Forward P/E ratio of 76.12. Its industry sports an average Forward P/E of 16.5, so one might conclude that Robinhood Markets, Inc. is trading at a premium comparatively.

It is also worth noting that HOOD currently has a PEG ratio of 5.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Investment Bank was holding an average PEG ratio of 1.31 at yesterday's closing price.

The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% of all 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.

To follow HOOD in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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