Are You Looking for a Top Momentum Pick? Why Roblox (RBLX) is a Great Choice
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Roblox (RBLX), a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Roblox currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
In order to see if RBLX is a promising momentum pick, let's examine some Momentum Style elements to see if this online gaming platform holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For RBLX, shares are up 3.43% over the past week while the Zacks Gaming industry is up 3.43% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 12.44% compares favorably with the industry's 6.49% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Roblox have increased 78.68% over the past quarter, and have gained 171.12% in the last year. In comparison, the S&P 500 has only moved 10.24% and 14.41%, respectively.
Investors should also take note of RBLX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, RBLX is averaging 8,622,222 shares for the last 20 days.
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with RBLX.
Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost RBLX's consensus estimate, increasing from -$1.41 to -$1.35 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been no downward revisions in the same time period.
Taking into account all of these elements, it should come as no surprise that RBLX is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Roblox on your short list.
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 Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
Here's how investing £10,000 a year can lead to annual passive income of £67,000
Wouldn't it be lovely to have a large passive income stream one day? It certainly sounds appealing to me. But how to get there, realistically? In stock market investing, there are arguably two classic paths. One is growth investing, and the other is dividend reinvesting. Here, I want to take a closer look at each approach to explore how £10,000 invested each year – roughly £833 a month — can lead to annual passive income of £67,000. Growth now, income later This strategy is probably the most intuitive, as it centres around investing in stocks that have the potential to go up many times in value. For example, a company's stock price eventually might go from £1 to £10. In this scenario, an investor would turn £833 into £8,333, without lifting a finger. A growth company usually reinvests all available cash back into the business to scale it. The risk is that it may never reach consistent profitability. In a worst-case scenario, it may even go bust. Some red flags include rapidly slowing growth, ballooning losses, and a weakening balance sheet, including rising debt or dwindling cash reserves (or both). However, a less obvious risk is overpaying for a stock. Take AI software firm Palantir Technologies, for example, which is exhibiting no signs of weakness. In Q1, revenue jumped 39% year on year to $884m, while it had cash and equivalents of $5.4bn. Anyone who invested in Palantir at the start of 2023 would have made a 2,300% return! Unfortunately, after this blistering rise, the stock is trading at 123 times sales. That's insanely expensive. If growth slows without warning, the pullback could be painful. Reinvesting dividends The second approach involves buying quality dividend stocks and reinvesting income back into more shares. This would rapidly fuel the compounding process. Legal & General (LSE: LGEN) is one such stock I do this with. The FTSE 100 firm specialises in insurance and pensions, managing over £1trn of assets. The share price growth has been steady rather than spectacular (up just 13% in five years). But the main attraction is that Legal & General has a great track record of dividend growth. Due to this combination of modest share price growth and growing payouts, the dividend yield is very high. Based on 2025 forecasts, the forecast yield is a mouth-watering 8.5%. Of course, dividends are never set in stone. Legal & General is heavily exposed to the UK economy, so if something went badly wrong, the firm's profits — and therefore dividend growth — might come under pressure. But given the company's strong balance sheet, I'm hopeful that I'll be receiving — and reinvesting — dividends long into the future. Passive income Let's assume an investor achieved a 10% average return on £10,000 a year. In this case, the portfolio would grow to around £1,028,134 after 25 years (excluding any platform fees). If the dividend investor was already receiving a steady 6.5% yield, they could switch off the reinvestment tap and start enjoying almost £67,000 in annual passive income. At this point, the growth investor could sell down growth holdings and move into dividend stocks. Assuming these collectively yielded 6.5%, the result would be the same, while maintaining the £1m portfolio. Both strategies can work brilliantly. The keys to success are regular investing and a patient, long-term mindset. The post Here's how investing £10,000 a year can lead to annual passive income of £67,000 appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Ben McPoland has positions in Legal & General Group Plc. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 minutes ago
- Yahoo
Analysts Are Updating Their ABB Ltd (VTX:ABBN) Estimates After Its Second-Quarter Results
Investors in ABB Ltd (VTX:ABBN) had a good week, as its shares rose 9.9% to close at CHF52.24 following the release of its quarterly results. The result was positive overall - although revenues of US$8.9b were in line with what the analysts predicted, ABB surprised by delivering a statutory profit of US$0.63 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Following the latest results, ABB's 25 analysts are now forecasting revenues of US$34.9b in 2025. This would be a satisfactory 4.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 6.9% to US$2.46. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$34.6b and earnings per share (EPS) of US$2.44 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates. See our latest analysis for ABB It will come as no surprise then, to learn that the consensus price target is largely unchanged at CHF48.60. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic ABB analyst has a price target of CHF59.77 per share, while the most pessimistic values it at CHF36.86. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting ABB's growth to accelerate, with the forecast 8.3% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that ABB is expected to grow much faster than its industry. The Bottom Line The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CHF48.60, with the latest estimates not enough to have an impact on their price targets. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for ABB going out to 2027, and you can see them free on our platform here.. Even so, be aware that ABB is showing 1 warning sign in our investment analysis , you should know about... Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
21 minutes ago
- Yahoo
If a 30-year-old puts £500 a month into a Stocks and Shares ISA, they could have £2.3m at retirement!
Investing in a Stocks and Shares ISA is arguably the most effective way to build wealth in Britain. And starting early allows young investors to maximise the rewards. In fact, a 30-year-old investor planning to retire at the age of 67 could become a multi-millionaire with just £500 a month. Here's how. Retiring with £2.3m in the bank The average return generated from the stock market varies depending on what investments are made. But here in the UK, that return's typically sat between 8% for large-caps and 10% for small-caps annually over the last 30 years. For someone who's just turned 30 and has no savings, securing that upper rate of return with a £500 monthly investment will grow to £2.3m when compounded over 37 years. And for those earning enough to maximise their annual ISA allowance (£1,667 a month), their retirement wealth could be a staggering £7.8m! And unlike when using a Self-Invested Personal Pension (SIPP), that money can be withdrawn all at once with zero taxes to pay. Of course, in practice, consistently earning a 10% annual return isn't easy. In fact, even when relying on an index fund, some years will be far better than others. And similarly, over a 37-year time span, chances are an investment portfolio will go through multiple corrections and crashes that could leave investors with less money than expected come retirement. Nevertheless, even earning half of this amount still leaves someone with over £1m in the bank – more than enough to live comfortably by today's standard. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions. Earning a 10% return with small-caps Investing in small-cap stocks opens the door to superior returns. But the small size of these businesses can also make them far more volatile and sensitive to external disruptions. In other words, aiming for a 10% return with this class of equities is a riskier endeavour compared to investing in boring FTSE 100 companies. Nevertheless, there is a wide range of promising opportunities to capitalise on right now. One stock that might have the potential to outperform in the long run is dotDigital Group (LSE:DOTD). The digital marketing platform allows small- and medium-sized businesses to automate their marketing campaigns and use artificial intelligence (AI) predictive analytics to maximise engagement. It's a tool that's proving particularly popular among e-commerce stores, resulting in the average revenue per customer quadrupling over the last decade. Unfavourable product mix with SMS contracts has resulted in margin compression. However, with management refocusing the mix toward maximising profitability, margins are expected to start recovering in 2025. And with the fundamentals now catching up to its previously lofty valuation, the stock's recent flat performance may soon improve. What could go wrong? Seeing new and existing customers spend more money each year is an encouraging sign. As is the group's impressive free cash flow generation, something that's rare for a small-cap stock. However, that doesn't make it a guaranteed winner. Despite my bullish stance, there are still some notable risks and challenges to consider. The digital advertising market is highly competitive with a lot of rivals sitting on big cash war chests. And so far, the group's progress regarding its expansion into international markets like Japan have been underwhelming. Nevertheless, if dotDigital can overcome these hurdles, the investment returns could be a further-research candidate as it may prove helpful in growing a Stocks and Shares ISA towards millionaire territory. The post If a 30-year-old puts £500 a month into a Stocks and Shares ISA, they could have £2.3m at retirement! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has positions in Dotdigital Group Plc. The Motley Fool UK has recommended Dotdigital Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
