Roblox Corporation (RBLX) Hit a 52 Week High, Can the Run Continue?

Company Performance - Roblox shares have increased by 15.4% over the past month, reaching a new 52-week high of $108, and have gained 86.2% since the start of the year, outperforming the Zacks Consumer Discretionary sector (11.7%) and the Zacks Gaming industry (14.1%) [1] - The company has consistently beaten earnings estimates, reporting an EPS of -$0.32 against a consensus estimate of -$0.41 in its last earnings report [2] Financial Projections - For the current fiscal year, Roblox is expected to post earnings of -$1.38 per share on revenues of $5.43 billion, reflecting a 4.17% change in EPS and a 24.22% change in revenues [3] - In the next fiscal year, the company is projected to earn -$1.14 per share on revenues of $6.52 billion, indicating year-over-year changes of 17.03% in EPS and 20.17% in revenues [3] Valuation Metrics - Roblox has a Value Score of F, while its Growth and Momentum Scores are A and B, respectively, resulting in a VGM Score of B [6] - The company currently holds a Zacks Rank of 2 (Buy), supported by a solid earnings estimate revision trend, suggesting potential for further stock price appreciation [7] Industry Comparison - The Gaming industry is positioned in the top 28% of all industries, indicating favorable conditions for both Roblox and its peers, such as Electronic Arts Inc. (EA), which also has a Zacks Rank of 2 (Buy) [10] - Electronic Arts Inc. is expected to post earnings of $8.22 per share on revenues of $7.88 billion for the current fiscal year, having beaten consensus estimates by 38.74% last quarter [9]