In the latest close session, T. Rowe Price (TROW) was down 1.28% at $117.35. The stock trailed the S&P 500, which registered a daily loss of 1.01%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.4%.
The stock of financial services firm has risen by 10.42% in the past month, leading the Finance sector's gain of 2.6% and the S&P 500's gain of 0.32%.
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 July 31, 2026. The company is expected to report EPS of $2.5, up 11.61% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.92 billion, up 11.56% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.07 per share and revenue of $7.73 billion, which would represent changes of +3.6% and +5.7%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for T Rowe Price. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.6% upward. Right now, T. Rowe Price possesses a Zacks Rank of #1 (Strong Buy).
Looking at valuation, T. Rowe Price is presently trading at a Forward P/E ratio of 11.8. Its industry sports an average Forward P/E of 11.84, so one might conclude that T. Rowe Price is trading at a discount comparatively.
We can also see that TROW currently has a PEG ratio of 4.28. 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 average PEG ratio for the Financial - Investment Management industry stood at 1.11 at the close of the market yesterday.
The Financial - Investment Management industry is part of the Finance sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
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.
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 Report
This article originally published on Zacks Investment Research (zacks.com).