Robinhood Markets, Inc. (HOOD) Suffers a Larger Drop Than the General Market: Key Insights

Core Insights - Robinhood Markets, Inc. closed at $131.44, down 2.02% from the previous session, underperforming the S&P 500, which fell 0.63% [1] - Over the past month, Robinhood's shares have increased by 13.07%, outperforming the Finance sector's decline of 0.83% and the S&P 500's gain of 0.92% [1] Earnings Expectations - The upcoming earnings report on November 5, 2025, is projected to show earnings of $0.49 per share, reflecting a year-over-year growth of 188.24% [2] - Quarterly revenue is expected to reach $1.16 billion, an increase of 81.66% from the same period last year [2] - For the full year, earnings are estimated at $1.76 per share and revenue at $4.17 billion, indicating growth of 61.47% and 41.29% respectively [3] Analyst Estimates and Stock Performance - Recent changes in analyst estimates for Robinhood are crucial as they often indicate shifts in near-term business trends [4] - Positive estimate revisions are interpreted as favorable for the business outlook [4] - The Zacks Rank system, which evaluates these estimate changes, currently rates Robinhood as 1 (Strong Buy), with a historical average annual return of +25% for such stocks since 1988 [6] Valuation Metrics - Robinhood is trading at a Forward P/E ratio of 76.29, significantly higher than the industry average of 16.22, suggesting a premium valuation [7] - The company's PEG ratio stands at 3.54, compared to the Financial - Investment Bank industry's average of 1.4 [8] - The Financial - Investment Bank industry is ranked 32 in the Zacks Industry Rank, placing it in the top 13% of over 250 industries [8]