T. Rowe Price (TROW) Gains As Market Dips: What You Should Know
T. Rowe Price (TROW) closed the most recent trading day at $106.66, moving +0.08% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq added 2.77%.
Heading into today, shares of the financial services firm had lost 11.85% over the past month, lagging the Finance sector's loss of 9.19% and the S&P 500's loss of 5.06% in that time.
Wall Street will be looking for positivity from T. Rowe Price as it approaches its next earnings report date. In that report, analysts expect T. Rowe Price to post earnings of $1.59 per share. This would mark a year-over-year decline of 39.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.52 billion, down 18.38% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.64 per share and revenue of $6.16 billion, which would represent changes of -17.21% and -5%, respectively, from the prior year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.5% higher within the past month. T. Rowe Price is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note T. Rowe Price's current valuation metrics, including its Forward P/E ratio of 16.06. For comparison, its industry has an average Forward P/E of 10.17, which means T. Rowe Price is trading at a premium to the group.
It is also worth noting that TROW currently has a PEG ratio of 2.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Management industry currently had an average PEG ratio of 1.39 as of yesterday's close.
The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% 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.
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 Report
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