Is Roblox a good stock to buy? Roblox (RBLX) presents mixed signals for potential investors. On the positive side, Roblox holds buy signals from both short and long-term moving averages, which suggests a favorable forecast. Additionally, Morningstar believes Roblox is undervalued with a fair value estimate of $50.00, giving it a 4-star rating. The company also has a Growth Score of A, indicating strong sales and earnings growth prospects. Analysts have a 12-month price target of $42.45, with a Moderate Buy consensus from 21 Buy Ratings and 8 Hold Ratings.
However, some negative signals exist as well. The stock experiences medium daily movements and has an average daily volatility of 2.46%. Zacks indicates Roblox may be overvalued, giving it a Value Score of D. Additionally, there are concerns about player engagement, which has decreased, leading to a cut in bookings growth guidance.
On neutral grounds, Roblox is considered a hold candidate due to potential for a turnaround despite several negative signals. It also holds a Zacks Rank of 3, indicating an inline return compared to the market in the next few months.
Considering these mixed signals, Roblox can be a good stock to buy for those who believe in its growth potential and are willing to manage the associated risks. However, it is essential to monitor the stock’s performance and adjust your strategy accordingly.