ROBLOX CORP -CLASS A (NYSE:RBLX) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template criteria. The company’s strong technical setup, combined with accelerating revenue and user engagement, makes it a compelling candidate for growth-focused investors.
Why RBLX Meets Minervini’s Trend Template
Minervini’s strategy focuses on stocks exhibiting strong uptrends with key technical confirmations. RBLX checks several critical boxes:
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Price Above Key Moving Averages:
- Current price ($81.27) is well above the 50-day ($62.72), 150-day ($58.98), and 200-day SMA ($54.88).
- The 50-day SMA is above both the 150-day and 200-day SMA, confirming bullish momentum.
- The 200-day SMA is trending upward, reinforcing long-term strength.
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Strong Relative Strength:
- RBLX has a ChartMill Relative Strength (CRS) score of 98.04, meaning it outperforms 98% of stocks.
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Price Near 52-Week High:
- Trading within 1% of its 52-week high ($82.02).
- Up 147% from its 52-week low ($31.59), showing sustained upward momentum.
High Growth Fundamentals
Beyond technicals, RBLX demonstrates strong growth metrics:
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Revenue Growth:
- TTM revenue growth of 30.2%, with consistent quarterly beats (3 out of last 4 quarters).
- Last quarter’s sales grew 30.6% year-over-year.
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User Engagement & Expansion:
- Roblox’s platform continues to expand globally, with increasing daily active users and engagement.
- Free cash flow per share surged 1,181% over the past year, reflecting strong monetization.
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Earnings Momentum:
- EPS growth accelerated in recent quarters (Q2Q growth of 25.6% last quarter).
- While still unprofitable on a GAAP basis, improving trends suggest narrowing losses.
Technical Outlook
According to ChartMill’s technical report, RBLX scores a perfect 10 on technical health, supported by:
- Strong short- and long-term uptrends.
- Leading performance within the Entertainment industry (outperforming 95% of peers).
- High liquidity, with average daily volume exceeding 8.5M shares.
However, the report notes that the stock’s recent volatility may require patience for an optimal entry point.
For a deeper technical breakdown, review the full technical analysis report here.
Our High Growth Momentum + Trend Template screener lists more high-growth stocks meeting these criteria.
Disclaimer
This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.
