In the latest close session, T. Rowe Price (TROW) was down 1.16% at $103.45. The stock fell short of the S&P 500, which registered a loss of 0.29% for the day. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq lost 0.34%.
Shares of the financial services firm have depreciated by 3.59% over the course of the past month, underperforming the Finance sector's gain of 1.89%, and the S&P 500's gain of 3.08%.
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 $2.41, down 6.23% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.83 billion, showing a 2.28% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.18 per share and a revenue of $7.17 billion, signifying shifts of -1.61% and +1.1%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for T Rowe Price. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.67% higher. T. Rowe Price is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, T. Rowe Price is currently trading at a Forward P/E ratio of 11.41. This signifies a discount in comparison to the average Forward P/E of 12.3 for its industry.
We can additionally observe that TROW currently boasts a PEG ratio of 2.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial – Investment Management was holding an average PEG ratio of 1.33 at yesterday's closing price.
The Financial – Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 41% of all 250+ industries.
