In the latest close session, T. Rowe Price (TROW) was up +1.47% at $104.80. The stock outpaced the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.52%.
Shares of the financial services firm have appreciated by 2.96% over the course of the past month, underperforming the Finance sector's gain of 4.92%, and the S&P 500's gain of 3%.
Market participants will be closely following the financial results of T. Rowe Price in its upcoming release. The company is expected to report EPS of $2.47, up 16.51% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.91 billion, up 4.94% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $9.76 per share and a revenue of $7.3 billion, demonstrating changes of +4.61% and +2.84%, respectively, from the preceding year.
It is also important to note the 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% increase. As of now, T. Rowe Price holds a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that T. Rowe Price has a Forward P/E ratio of 10.58 right now. Its industry sports an average Forward P/E of 12.65, so one might conclude that T. Rowe Price is trading at a discount comparatively.
It is also worth noting that TROW currently has a PEG ratio of 2.79. 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. The Financial - Investment Management industry had an average PEG ratio of 1.29 as trading concluded yesterday.
The Financial - Investment Management industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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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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