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Robinhood Markets, Inc. (HOOD) Stock Slides as Market Rises: Facts to Know Before You Trade
September 19, 2024

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The most recent trading session ended with Robinhood Markets, Inc. (HOOD - Free Report) standing at $22.81, reflecting a -0.61% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 1.7%. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 2.51%.

Prior to today's trading, shares of the company had gained 13.73% over the past month. This has outpaced the Finance sector's gain of 2.47% and the S&P 500's gain of 1.27% in that time.

Market participants will be closely following the financial results of Robinhood Markets, Inc. in its upcoming release. The company is forecasted to report an EPS of $0.20, showcasing a 322.22% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $681.5 million, showing a 45.93% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.76 per share and revenue of $2.66 billion. These totals would mark changes of +224.59% and +42.37%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Robinhood Markets, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been no change in the Zacks Consensus EPS estimate. Robinhood Markets, Inc. presently features a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Robinhood Markets, Inc. is holding a Forward P/E ratio of 30.12. This represents a premium compared to its industry's average Forward P/E of 16.63.

The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 65, placing it within the top 26% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.




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