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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 $78.34, moving +1.63% from the previous trading session. This change outpaced the S&P 500's 1.54% gain on the day. Elsewhere, the Dow gained 1.59%, while the tech-heavy Nasdaq added 0.98%.

Prior to today's trading, shares of the robotics technology company had gained 3.92% over the past month. This has lagged the Industrial Products sector's gain of 8.91% and the S&P 500's gain of 8% in that time.

Wall Street will be looking for positivity from IRBT as it approaches its next earnings report date. On that day, IRBT is projected to report earnings of $0.90 per share, which would represent a year-over-year decline of 27.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $314.03 million, up 8.51% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.45 per share and revenue of $1.23 billion, which would represent changes of -17.51% and +1.54%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for IRBT. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.34% higher. IRBT is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that IRBT has a Forward P/E ratio of 31.49 right now. This represents a premium compared to its industry's average Forward P/E of 31.27.

Investors should also note that IRBT has a PEG ratio of 2.1 right now. 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. IRBT's industry had an average PEG ratio of 3.14 as of yesterday's close.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 10% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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