We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Buy T. Rowe Price (TROW) Stock Now
Read MoreHide Full Article
T. Rowe Price Group, Inc. (TROW - Free Report) appears to be a solid bet, given its focus on fortifying business through several initiatives, such as launching investment strategies and vehicles, enhancing client-engagement capabilities in each distribution channel, strengthening distribution channels in the United States, EMEA, and the Asia Pacific, and improving its technology platform. The company’s mix shift toward international growth funds and debt-free position are also anticipated to drive the stock.
Though T. Rowe Price’s expenses might escalate on potential investments in technology and several initiatives, a sharper focus on organic growth is anticipated to make its growth path smoother.
The company has been witnessing upward estimate revisions, reflecting analysts’ optimism about its growth prospects. Over the past 30 days, the Zacks Consensus Estimate for its 2020 and 2021 earnings has moved 8.8% and 11.3% north, respectively.
Further, this Zacks Rank #2 (Buy) stock has gained 16.8% in the last three months compared with 14.7% growth of the industry.
There are a number of other aspects, which make the stock an attractive investment option.
5 Factors That Make T. Rowe Price an Attractive Buy
Revenue Growth: Organic growth is a key strength for T. Rowe Price, as reflected in its revenue growth story. Its net revenues witnessed a 7.5% CAGR over the last five years (2015-2019).
Earnings Per Share Strength: T. Rowe Price witnessed earnings growth of 16.44% over the last three-five years. In addition, the company’s long-term (three-five years) estimated EPS growth rate of 7.82% promises rewards for investors. Also, it recorded an earnings surprise of 6.25%, on average, over the trailing four quarters.
Steady Capital Deployment: In February 2020, the company raised its quarterly common stock dividend by 18.4%. This marked T. Rowe Price’s 34th consecutive annual dividend increase and reflected its commitment to return value to shareholders, with strong cash-generation capabilities. Further, its board of directors increased the common share-repurchase authorization by 10 million shares, bringing the total authorization to 22.4 million shares.
Strong Leverage: T. Rowe Price’s debt/equity ratio is 0.02 compared with the industry average of 0.18, displaying no debt burden relative to the industry. It highlights the financial stability of the company, even in an unstable economic environment.
Superior Return on Equity (ROE): T. Rowe Price’s ROE of 29.65% compared with the industry average of 11.91% highlights the company’s commendable position over its peers.
Other Stocks to Consider
TD Ameritrade Holding Corporation (AMTD - Free Report) has been witnessing upward estimate revisions for the past 30 days. Moreover, this Zacks #1 Ranked (Strong Buy) stock has rallied more than 6% in the past three months. You can see the complete list of today’s Zacks #1 Rank stocks here.
E*TRADE Financial Corporation has been witnessing upward estimate revisions for the past 30 days. Further, the company’s shares have gained 31.3% in the past three months. At present, it carries a Zacks Rank of 2.
Artisan Partners Asset Management Inc. (APAM - Free Report) has been witnessing upward estimate revisions for the past 30 days. Additionally, the stock has jumped 35.3% in three months’ time. It currently sports a Zacks Rank #1.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Here's Why You Should Buy T. Rowe Price (TROW) Stock Now
T. Rowe Price Group, Inc. (TROW - Free Report) appears to be a solid bet, given its focus on fortifying business through several initiatives, such as launching investment strategies and vehicles, enhancing client-engagement capabilities in each distribution channel, strengthening distribution channels in the United States, EMEA, and the Asia Pacific, and improving its technology platform. The company’s mix shift toward international growth funds and debt-free position are also anticipated to drive the stock.
Though T. Rowe Price’s expenses might escalate on potential investments in technology and several initiatives, a sharper focus on organic growth is anticipated to make its growth path smoother.
The company has been witnessing upward estimate revisions, reflecting analysts’ optimism about its growth prospects. Over the past 30 days, the Zacks Consensus Estimate for its 2020 and 2021 earnings has moved 8.8% and 11.3% north, respectively.
Further, this Zacks Rank #2 (Buy) stock has gained 16.8% in the last three months compared with 14.7% growth of the industry.
There are a number of other aspects, which make the stock an attractive investment option.
5 Factors That Make T. Rowe Price an Attractive Buy
Revenue Growth: Organic growth is a key strength for T. Rowe Price, as reflected in its revenue growth story. Its net revenues witnessed a 7.5% CAGR over the last five years (2015-2019).
Earnings Per Share Strength: T. Rowe Price witnessed earnings growth of 16.44% over the last three-five years. In addition, the company’s long-term (three-five years) estimated EPS growth rate of 7.82% promises rewards for investors. Also, it recorded an earnings surprise of 6.25%, on average, over the trailing four quarters.
Steady Capital Deployment: In February 2020, the company raised its quarterly common stock dividend by 18.4%. This marked T. Rowe Price’s 34th consecutive annual dividend increase and reflected its commitment to return value to shareholders, with strong cash-generation capabilities. Further, its board of directors increased the common share-repurchase authorization by 10 million shares, bringing the total authorization to 22.4 million shares.
Strong Leverage: T. Rowe Price’s debt/equity ratio is 0.02 compared with the industry average of 0.18, displaying no debt burden relative to the industry. It highlights the financial stability of the company, even in an unstable economic environment.
Superior Return on Equity (ROE): T. Rowe Price’s ROE of 29.65% compared with the industry average of 11.91% highlights the company’s commendable position over its peers.
Other Stocks to Consider
TD Ameritrade Holding Corporation (AMTD - Free Report) has been witnessing upward estimate revisions for the past 30 days. Moreover, this Zacks #1 Ranked (Strong Buy) stock has rallied more than 6% in the past three months. You can see the complete list of today’s Zacks #1 Rank stocks here.
E*TRADE Financial Corporation has been witnessing upward estimate revisions for the past 30 days. Further, the company’s shares have gained 31.3% in the past three months. At present, it carries a Zacks Rank of 2.
Artisan Partners Asset Management Inc. (APAM - Free Report) has been witnessing upward estimate revisions for the past 30 days. Additionally, the stock has jumped 35.3% in three months’ time. It currently sports a Zacks Rank #1.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>