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

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iRobot (IRBT - Free Report) closed at $85.85 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 0.35%. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, added 0.26%.

Prior to today's trading, shares of the robotics technology company had gained 10.59% over the past month. This has outpaced the Industrial Products sector's gain of 2.5% and the S&P 500's gain of 3.27% 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 $0.21 per share. This would mark a year-over-year decline of 70%. Our most recent consensus estimate is calling for quarterly revenue of $485.02 million, up 13.65% from the year-ago period.

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.

Investors should also note any 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.

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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. IRBT is currently a Zacks Rank #3 (Hold).

Looking at its valuation, IRBT is holding a Forward P/E ratio of 24.55. Its industry sports an average Forward P/E of 26.63, so we one might conclude that IRBT is trading at a discount comparatively.

We can also see that IRBT currently has a PEG ratio of 1.64. 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. The Industrial Automation and Robotics industry currently had an average PEG ratio of 2.2 as of yesterday's close.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% 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.

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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