Robinhood Markets, Inc. (HOOD) closed the most recent trading day at $93.19, moving +1.04% from the previous trading session. This change outpaced the S&P 500’s 0.5% gain on the day. On the other hand, the Dow registered a gain of 0.7%, and the technology-centric Nasdaq increased by 0.31%.
Prior to today’s trading, shares of the company had gained 14.29% outpaced the Finance sector’s gain of 1.89% and the S&P 500’s loss of 0.23%.
Analysts and investors alike will be keeping a close eye on the performance of Robinhood Markets, Inc. in its upcoming earnings disclosure. In that report, analysts expect Robinhood Markets, Inc. to post earnings of $0.42 per share. This would mark no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, up 20.73% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.83 per share and a revenue of $4.97 billion, demonstrating changes of -10.73% and +11.1%, respectively, from the preceding year.
Investors might also notice 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 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 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 0.99% upward. Robinhood Markets, Inc. is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Robinhood Markets, Inc. is currently being traded at a Forward P/E ratio of 50.43. This valuation marks a premium compared to its industry average Forward P/E of 14.
We can additionally observe that HOOD currently boasts a PEG ratio of 2.31. 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. By the end of yesterday’s trading, the Financial – Investment Bank industry had an average PEG ratio of 1.06.
The Financial – Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 105, placing it within the top 44% of over 250 industries.
