Sarasota, Florida-based Roper Technologies, Inc. (ROP) designs and develops software, and technology enabled products and solutions. With a market cap of $60.5 billion, the company offers industrial controls, fluid handling, pumps, medical and scientific devices, analytical instrumentation products, radio frequency identification (RFID) communication technology, and software solutions.
Shares of this industrial equipment maker have underperformed the broader market over the past year. ROP has gained 7.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.8%. In 2024, ROP’s stock rose 3.5%, compared to the SPX’s 25.8% rise on a YTD basis.
Narrowing the focus, ROP’s underperformance is apparent compared to the SPDR S&P Software & Services ETF (XSW). The exchange-traded fund has gained about 44.3% over the past year. Moreover, the ETF’s 29% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.
On Oct. 23, ROP shares closed down more than 1% after reporting its Q3 results. Its adjusted EPS of $4.62 surpassed Wall Street expectations of $4.53. The company’s revenue was $1.8 billion, exceeding Wall Street forecasts of $1.7 billion. For Q4, ROP expects its adjusted EPS to range from $4.70 to $4.74. The company expects full-year adjusted EPS to be between $18.21 and $18.25.
For the current fiscal year, ending in December, analysts expect ROP’s EPS to grow 9.2% to $18.24 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 14 analysts covering ROP stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
The configuration is consistent over the past three months.
On Oct. 24, Jefferies Financial Group Inc. (JEF) maintained a “Buy” rating on ROP with a $635 price target, implying a potential upside of 12.5% from current levels.
The mean price target of $607.08 represents a 7.6% premium to ROP’s current price levels. The Street-high price target of $666 suggests an upside potential of 18%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Tesla is Disrupting The Automobile like Cars Disrupted Horses, Says Elon Musk, "When Henry Ford Made Cheap, Reliable Cars, People Said, ‘Nah, What’s Wrong With a Horse?'"
- Elon Musk Says To Find a Reason To Look Forward to Tomorrow, "There Have to Be Reasons That You Get Up in the Morning and You Want to Live, What Do You Love About the Future?"
- Elon Musk: "If Things are Not Failing, You are Not Innovating Enough"
- Elon Musk Says To Do Stuff Even If You're Going to Fail, "When Something is Important Enough, You Do It Even If The Odds Are Not in Your Favor"
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
