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IRobot (IRBT) Outpaces Stock Market Gains: What You Should Know

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iRobot (IRBT - Free Report) closed the most recent trading day at $89.66, moving +0.96% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.61%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.53%.

Coming into today, shares of the robotics technology company had lost 8.3% in the past month. In that same time, the Industrial Products sector lost 6.59%, while the S&P 500 lost 3.77%.

Investors will be hoping for strength from IRBT as it approaches its next earnings release. On that day, IRBT is projected to report earnings of $0.02 per share, which would represent a year-over-year decline of 94.59%. Our most recent consensus estimate is calling for quarterly revenue of $267.90 million, up 18.37% from the year-ago period.

IRBT's full-year Zacks Consensus Estimates are calling for earnings of $3.25 per share and revenue of $1.29 billion. These results would represent year-over-year changes of -38.21% and +18%, respectively.

It is also important to note the recent changes to analyst estimates for IRBT. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. IRBT currently has a Zacks Rank of #2 (Buy).

Digging into valuation, IRBT currently has a Forward P/E ratio of 27.34. This valuation marks a premium compared to its industry's average Forward P/E of 22.45.

Also, we should mention that IRBT has a PEG ratio of 1.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Industrial Automation and Robotics was holding an average PEG ratio of 2.27 at yesterday's closing price.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 18% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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