In the latest trading session, T. Rowe Price (TROW) closed at $89.14, marking a -1.56% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.21% for the day. On the other hand, the Dow registered a loss of 0.07%, and the technology-centric Nasdaq increased by 0.01%.
The stock of financial services firm has fallen by 5.49% in the past month, leading the Finance sector's loss of 5.83% and undershooting the S&P 500's loss of 2.26%.
Analysts and investors alike will be keeping a close eye on the performance of T. Rowe Price in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.44, reflecting a 9.42% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.88 billion, indicating a 6.78% growth compared to the corresponding quarter of the prior year.
TROW's full-year Zacks Consensus Estimates are calling for earnings of $10.04 per share and revenue of $7.63 billion. These results would represent year-over-year changes of +3.29% and +4.37%, respectively.
Any recent changes to analyst estimates for T. Rowe Price should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.66% lower. Currently, T. Rowe Price is carrying a Zacks Rank of #4 (Sell).
Investors should also note T. Rowe Price's current valuation metrics, including its Forward P/E ratio of 9.02. For comparison, its industry has an average Forward P/E of 10.12, which means T. Rowe Price is trading at a discount to the group.
We can also see that TROW currently has a PEG ratio of 4.7. 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 0.82.
The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 29% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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