T. Rowe Price (TROW) closed the most recent trading day at $103.05, moving +2.4% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.32%. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.26%.
Shares of the financial services firm witnessed a gain of 9.88% over the previous month, beating the performance of the Finance sector with its gain of 3.04%, and the S&P 500's gain of 4.51%.
The investment community will be closely monitoring the performance of T. Rowe Price in its forthcoming earnings report. The company is scheduled to release its earnings on August 1, 2025. The company is forecasted to report an EPS of $2.08, showcasing a 7.96% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.7 billion, indicating a 1.89% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.77 per share and a revenue of $6.99 billion, signifying shifts of -6% and -1.42%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for T Rowe Price. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.2% higher. At present, T. Rowe Price boasts a Zacks Rank of #2 (Buy).
In the context of valuation, T. Rowe Price is at present trading with a Forward P/E ratio of 11.47. For comparison, its industry has an average Forward P/E of 11.65, which means T. Rowe Price is trading at a discount to the group.
It is also worth noting that TROW currently has a PEG ratio of 3.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial - Investment Management industry had an average PEG ratio of 1.4 as trading concluded yesterday.
The Financial - Investment Management industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 16, positioning it in the top 7% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TROW in the coming trading sessions, be sure to utilize Zacks.com.
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T. Rowe Price Group, Inc. (TROW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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