In the latest trading session, iRobot (IRBT - Free Report) closed at $61.42, marking a +1.05% move from the previous day. This move outpaced the S&P 500's daily gain of 0.66%. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 0.38%.
Prior to today's trading, shares of the robotics technology company had lost 18.41% over the past month. This has lagged the Industrial Products sector's loss of 8.63% and the S&P 500's loss of 5.01% in that time.
IRBT will be looking to display strength as it nears its next earnings release. On that day, IRBT is projected to report earnings of $0.58 per share, which would represent a year-over-year decline of 48.21%. Meanwhile, our latest consensus estimate is calling for revenue of $260.79 million, down 1.41% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.73 per share and revenue of $1.22 billion, which would represent changes of -48.1% and +11.59%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for IRBT. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. 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 22.3. Its industry sports an average Forward P/E of 19.6, so we one might conclude that IRBT is trading at a premium comparatively.
Investors should also note that IRBT has a PEG ratio of 1.49 right now. 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. Industrial Automation and Robotics stocks are, on average, holding a PEG ratio of 1.83 based on yesterday's closing prices.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.