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T. Rowe Price (TROW) Stock Sinks As Market Gains: What You Should Know

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In the latest market close, T. Rowe Price (TROW - Free Report) reached $92.15, with a -1.54% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.41%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq appreciated by 0.67%.

Heading into today, shares of the financial services firm had gained 2.12% over the past month, lagging the Finance sector's gain of 4.15% and the S&P 500's gain of 6.13% in that time.

Investors will be eagerly watching for the performance of T. Rowe Price in its upcoming earnings disclosure. In that report, analysts expect T. Rowe Price to post earnings of $1.99 per share. This would mark a year-over-year decline of 11.95%. Alongside, our most recent consensus estimate is anticipating revenue of $1.7 billion, indicating a 2.16% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.26 per share and a revenue of $6.92 billion, indicating changes of -11.47% and -2.5%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for T. Rowe Price. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.57% higher. T. Rowe Price is currently a Zacks Rank #4 (Sell).

Digging into valuation, T. Rowe Price currently has a Forward P/E ratio of 11.33. This signifies a premium in comparison to the average Forward P/E of 10.74 for its industry.

Meanwhile, TROW's PEG ratio is currently 3.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Financial - Investment Management stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.

The Financial - Investment Management industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 218, finds itself in the bottom 12% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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