In the latest market close, T. Rowe Price (TROW) reached $92.83, with a -0.23% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.08%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.52%.
The the stock of financial services firm has fallen by 14.24% in the past month, lagging the Finance sector's loss of 2.57% and the S&P 500's loss of 7.33%.
The investment community will be closely monitoring the performance of T. Rowe Price in its forthcoming earnings report. The company's upcoming EPS is projected at $2.15, signifying a 9.66% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.8 billion, up 2.91% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.14 per share and a revenue of $7.45 billion, signifying shifts of -2.04% and +4.98%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for T. Rowe Price. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.62% lower. T. Rowe Price is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that T. Rowe Price has a Forward P/E ratio of 10.18 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.9.
Also, we should mention that TROW has a PEG ratio of 2.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Financial - Investment Management industry was having an average PEG ratio of 0.99.
The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
