In the latest trading session, iRobot (IRBT - Free Report) closed at $89.28, marking a -1.07% move from the previous day. This change lagged the S&P 500's 0.01% gain on the day. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq lost 0.36%.
Prior to today's trading, shares of the robotics technology company had gained 15.93% over the past month. This has outpaced the Industrial Products sector's gain of 7.25% and the S&P 500's gain of 2.55% in that time.
IRBT will be looking to display strength as it nears its next earnings release, which is expected to be October 20, 2020. The company is expected to report EPS of $0.90, down 27.42% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. IRBT is currently a Zacks Rank #3 (Hold).
Looking at its valuation, IRBT is holding a Forward P/E ratio of 36.87. For comparison, its industry has an average Forward P/E of 34.16, which means IRBT is trading at a premium to the group.
Investors should also note that IRBT has a PEG ratio of 2.46 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Industrial Automation and Robotics stocks are, on average, holding a PEG ratio of 3.36 based on yesterday's closing prices.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow IRBT in the coming trading sessions, be sure to utilize Zacks.com.