Would Mark Minervini consider ROBLOX CORP -CLASS A (NYSE:RBLX) a top stock pick?

Our stock screener has spotted ROBLOX CORP -CLASS A (NYSE:RBLX) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

Minervini Trend Template Analysis.

RBLX checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Exploring RBLX's Growth

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. RBLX scores a 4 out of 10:

Explosive Earnings Growth

• The quarterly earnings of RBLX have shown a 36.54% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• The earnings per share (EPS) growth of RBLX is accelerating: the current Q2Q growth of 36.54% is above the previous quarter Q2Q growth of 24.44%. Earnings momentum and acceleration are key for high growth systems.
• Over the past year, RBLX has demonstrated 24.06% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• RBLX has achieved significant quarter-to-quarter (Q2Q) revenue growth of 20.84%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• With notable 1-year revenue growth of 28.68%, RBLX exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• RBLX has seen a 10.43% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• RBLX has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.

Financial Strength & Profitability

• RBLX has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• RBLX has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.

Institutional Confidence & Market Strength

• RBLX exhibits a favorable ownership structure, with an institutional shareholder ownership of 77.02%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.
• RBLX has exhibited strong Relative Strength(RS) in recent periods, with a current 95.91 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

Why is RBLX a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. RBLX scores a 3 out of 10:

Although RBLX has an excellent technical rating, it does not present a decent entry opportunity at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Our latest full technical report of RBLX contains the most current technical analsysis.

Concluding

It looks like ROBLOX CORP -CLASS A meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.