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

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In the latest trading session, iRobot (IRBT - Free Report) closed at $79.38, marking a +1.47% move from the previous day. This change outpaced the S&P 500's 0.18% gain on the day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.5%.

Coming into today, shares of the robotics technology company had gained 0.46% in the past month. In that same time, the Industrial Products sector gained 4.77%, while the S&P 500 gained 3.22%.

Wall Street will be looking for positivity from IRBT as it approaches its next earnings report date. The company is expected to report EPS of $0.21, down 70% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $485.02 million, up 13.65% from the year-ago period.

IRBT's full-year Zacks Consensus Estimates are calling for earnings of $3.53 per share and revenue of $1.37 billion. These results would represent year-over-year changes of +18.86% and +12.9%, respectively.

Investors should also note any recent changes to analyst estimates for IRBT. 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. 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, 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 currently a Zacks Rank #1 (Strong Buy).

Investors should also note IRBT's current valuation metrics, including its Forward P/E ratio of 22.17. This valuation marks a discount compared to its industry's average Forward P/E of 25.39.

Also, we should mention that IRBT has a PEG ratio of 1.48. 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. Industrial Automation and Robotics stocks are, on average, holding a PEG ratio of 2.44 based on yesterday's closing prices.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 9, 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.

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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