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

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iRobot (IRBT - Free Report) closed at $118.44 in the latest trading session, marking a +0.25% move from the prior day. This change outpaced the S&P 500's 1.31% loss on the day. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, lost 2.7%.

Prior to today's trading, shares of the robotics technology company had gained 4.12% over the past month. This has lagged the Industrial Products sector's gain of 5.68% and outpaced the S&P 500's gain of 1.32% in that time.

Wall Street will be looking for positivity from IRBT as it approaches its next earnings report date. On that day, IRBT is projected to report earnings of $0.12 per share, which would represent year-over-year growth of 118.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $261.57 million, up 35.85% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.14 per share and revenue of $1.64 billion, which would represent changes of -24.15% and +14.87%, respectively, from the prior year.

Investors should also note any 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 26.13% higher. IRBT is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, IRBT is currently trading at a Forward P/E ratio of 37.62. This represents a premium compared to its industry's average Forward P/E of 32.75.

Investors should also note that IRBT has a PEG ratio of 3.01 right now. 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 was holding an average PEG ratio of 3 at yesterday's closing price.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% 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.

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


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