T. Rowe Price (TROW) closed the most recent trading day at $104.17, moving -1.38% from the previous trading session. This change lagged the S&P 500's 0.47% gain on the day. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.94%.
The financial services firm's stock has dropped by 1.32% in the past month, falling short of the Finance sector's gain of 2.42% and the S&P 500's gain of 2.32%.
The investment community will be closely monitoring the performance of T. Rowe Price in its forthcoming earnings report. The company is forecasted to report an EPS of $2.4, showcasing a 6.61% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.83 billion, indicating a 2.28% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.12 per share and a revenue of $7.17 billion, representing changes of -2.25% and +1.1%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.79% higher. T. Rowe Price presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, T. Rowe Price is currently exchanging hands at a Forward P/E ratio of 11.59. This valuation marks a discount compared to its industry average Forward P/E of 12.37.
Meanwhile, TROW's PEG ratio is currently 2.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Financial - Investment Management stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.
The Financial - Investment Management industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% of over 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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T. Rowe Price Group, Inc. (TROW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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