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T. Rowe Price (TROW) Increases Yet Falls Behind Market: What Investors Need to Know
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T. Rowe Price (TROW - Free Report) ended the recent trading session at $90.14, demonstrating a +1.25% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 2.91%. Elsewhere, the Dow saw an upswing of 2.49%, while the tech-heavy Nasdaq appreciated by 3.83%.
The financial services firm's shares have seen a decrease of 6.21% over the last month, surpassing the Finance sector's loss of 7.75% and the S&P 500's loss of 7.64%.
The upcoming earnings release of T. Rowe Price will be of great interest to investors. The company is forecasted to report an EPS of $2.44, showcasing a 9.42% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.88 billion, up 6.49% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.04 per share and a revenue of $7.63 billion, representing changes of +3.29% and +4.37%, respectively, from the prior year.
Any recent changes to analyst estimates for T. Rowe Price should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate has moved 0.49% lower within the past month. T. Rowe Price is currently a Zacks Rank #4 (Sell).
In terms of valuation, T. Rowe Price is currently trading at a Forward P/E ratio of 8.87. This indicates a discount in contrast to its industry's Forward P/E of 9.66.
Meanwhile, TROW's PEG ratio is currently 3.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Financial - Investment Management industry held an average PEG ratio of 0.83.
The Financial - Investment Management industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 167, placing it within the bottom 32% of over 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.
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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T. Rowe Price (TROW) Increases Yet Falls Behind Market: What Investors Need to Know
T. Rowe Price (TROW - Free Report) ended the recent trading session at $90.14, demonstrating a +1.25% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 2.91%. Elsewhere, the Dow saw an upswing of 2.49%, while the tech-heavy Nasdaq appreciated by 3.83%.
The financial services firm's shares have seen a decrease of 6.21% over the last month, surpassing the Finance sector's loss of 7.75% and the S&P 500's loss of 7.64%.
The upcoming earnings release of T. Rowe Price will be of great interest to investors. The company is forecasted to report an EPS of $2.44, showcasing a 9.42% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.88 billion, up 6.49% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.04 per share and a revenue of $7.63 billion, representing changes of +3.29% and +4.37%, respectively, from the prior year.
Any recent changes to analyst estimates for T. Rowe Price should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate has moved 0.49% lower within the past month. T. Rowe Price is currently a Zacks Rank #4 (Sell).
In terms of valuation, T. Rowe Price is currently trading at a Forward P/E ratio of 8.87. This indicates a discount in contrast to its industry's Forward P/E of 9.66.
Meanwhile, TROW's PEG ratio is currently 3.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Financial - Investment Management industry held an average PEG ratio of 0.83.
The Financial - Investment Management industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 167, placing it within the bottom 32% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.