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

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iRobot (IRBT - Free Report) closed the most recent trading day at $94.83, moving +1.97% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.23%.

Prior to today's trading, shares of the robotics technology company had lost 4.81% over the past month. This has lagged the Industrial Products sector's gain of 0.74% and the S&P 500's gain of 2.34% in that time.

Wall Street will be looking for positivity from IRBT as it approaches its next earnings report date. In that report, analysts expect IRBT to post earnings of $0.30 per share. This would mark a year-over-year decline of 71.7%. Our most recent consensus estimate is calling for quarterly revenue of $355.4 million, up 26.98% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.13 per share and revenue of $1.68 billion, which would represent changes of -24.4% and +17.74%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for IRBT. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. IRBT is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, IRBT is currently trading at a Forward P/E ratio of 29.75. This represents a discount compared to its industry's average Forward P/E of 30.38.

It is also worth noting that IRBT currently has a PEG ratio of 2.21. 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 2.21 at yesterday's closing price.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 17% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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