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IRobot (IRBT) Gains But Lags Market: What You Should Know

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iRobot (IRBT - Free Report) closed at $123 in the latest trading session, marking a +0.65% move from the prior day. This change lagged the S&P 500's 1.47% gain on the day. Meanwhile, the Dow gained 0.79%, and the Nasdaq, a tech-heavy index, added 2.02%.

Heading into today, shares of the robotics technology company had gained 24.64% over the past month, outpacing the Industrial Products sector's gain of 2.3% and the S&P 500's gain of 1.5% in that time.

IRBT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.68, up 3.03% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $252.34 million, up 16.25% from the prior-year quarter.

IRBT's full-year Zacks Consensus Estimates are calling for earnings of $3.03 per share and revenue of $1.30 billion. These results would represent year-over-year changes of -42.4% and +18.81%, respectively.

Investors might also notice 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.76% higher. IRBT currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note IRBT's current valuation metrics, including its Forward P/E ratio of 40.36. This valuation marks a premium compared to its industry's average Forward P/E of 21.75.

Investors should also note that IRBT has a PEG ratio of 1.97 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IRBT's industry had an average PEG ratio of 2.17 as of yesterday's close.

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 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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