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

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The most recent trading session ended with T. Rowe Price (TROW - Free Report) standing at $95.93, reflecting a +1% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.63%.

Heading into today, shares of the financial services firm had lost 2.17% over the past month, lagging the Finance sector's gain of 3.04% and the S&P 500's gain of 6.29% in that time.

Analysts and investors alike will be keeping a close eye on the performance of T. Rowe Price in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.99, indicating a 11.95% decline compared to the equivalent quarter last year. 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.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.26 per share and a revenue of $6.92 billion, representing changes of -11.47% and -2.5%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for T. Rowe Price. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.39% higher within the past month. As of now, T. Rowe Price holds a Zacks Rank of #3 (Hold).

Investors should also note T. Rowe Price's current valuation metrics, including its Forward P/E ratio of 11.5. This denotes a premium relative to the industry's average Forward P/E of 10.86.

We can additionally observe that TROW currently boasts a PEG ratio of 3.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Financial - Investment Management industry held an average PEG ratio of 1.29.

The Financial - Investment Management industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 40% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

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


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