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IRobot (IRBT) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, iRobot (IRBT - Free Report) closed at $76.51, marking a -0.26% move from the previous day. This change lagged the S&P 500's 0.13% loss on the day. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.54%.

Heading into today, shares of the robotics technology company had gained 0.42% over the past month, lagging the Industrial Products sector's gain of 5.34% and the S&P 500's gain of 3.5% in that time.

IRBT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.21, down 70% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $485.02 million, up 13.65% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.53 per share and revenue of $1.37 billion. These totals would mark changes of +18.86% and +12.9%, respectively, from last year.

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. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. IRBT is currently a Zacks Rank #1 (Strong Buy).

Investors should also note IRBT's current valuation metrics, including its Forward P/E ratio of 21.74. This valuation marks a discount compared to its industry's average Forward P/E of 25.43.

It is also worth noting that IRBT currently has a PEG ratio of 1.45. 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. IRBT's industry had an average PEG ratio of 2.39 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 8, putting it in the top 4% 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.

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


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