In the latest close session, T. Rowe Price (TROW) was up +1.19% at $105.51. The stock's performance was ahead of the S&P 500's daily gain of 0.51%. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 0.48%.
The financial services firm's shares have seen a decrease of 7.2% over the last month, not keeping up with the Finance sector's loss of 3.64% and the S&P 500's gain of 0.74%.
The upcoming earnings release of T. Rowe Price will be of great interest to investors. It is anticipated that the company will report an EPS of $2.62, marking a 6.76% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.97 billion, up 3.87% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.16 per share and revenue of $7.71 billion, indicating changes of +4.53% and +5.44%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for T Rowe Price. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.15% upward. As of now, T. Rowe Price holds a Zacks Rank of #3 (Hold).
With respect to valuation, T. Rowe Price is currently being traded at a Forward P/E ratio of 10.26. Its industry sports an average Forward P/E of 10.85, so one might conclude that T. Rowe Price is trading at a discount comparatively.
Meanwhile, TROW's PEG ratio is currently 3.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial - Investment Management industry had an average PEG ratio of 1.02 as trading concluded yesterday.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 Report
This article originally published on Zacks Investment Research (zacks.com).