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IRobot (IRBT) Gains But Lags Market: What You Should Know

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iRobot (IRBT - Free Report) closed at $76.60 in the latest trading session, marking a +0.88% move from the prior day. This move lagged the S&P 500's daily gain of 1.6%. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, added 2.26%.

Prior to today's trading, shares of the robotics technology company had gained 1.67% over the past month. This has outpaced the Industrial Products sector's loss of 3.64% and the S&P 500's loss of 5.3% in that time.

IRBT will be looking to display strength as it nears its next earnings release. In that report, analysts expect IRBT to post earnings of $0.90 per share. This would mark a year-over-year decline of 27.42%. Meanwhile, our latest consensus estimate is calling for revenue of $314.03 million, up 8.51% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.45 per share and revenue of $1.23 billion. These totals would mark changes of -17.51% and +1.54%, respectively, from last year.

Any recent changes to analyst estimates for IRBT should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. IRBT is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, IRBT currently has a Forward P/E ratio of 31.02. For comparison, its industry has an average Forward P/E of 29.94, which means IRBT is trading at a premium to the group.

It is also worth noting that IRBT currently has a PEG ratio of 2.07. 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. The Industrial Automation and Robotics industry currently had an average PEG ratio of 3.39 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 213, putting it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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