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IRobot (IRBT) Stock Sinks As Market Gains: What You Should Know

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iRobot (IRBT - Free Report) closed the most recent trading day at $62.14, moving -1.29% from the previous trading session. This move lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.17%.

Heading into today, shares of the robotics technology company had lost 9.02% over the past month, lagging the Industrial Products sector's gain of 2.99% and the S&P 500's gain of 4.92% in that time.

IRBT will be looking to display strength as it nears its next earnings release. In that report, analysts expect IRBT to post earnings of $0.58 per share. This would mark a year-over-year decline of 48.21%. Our most recent consensus estimate is calling for quarterly revenue of $260.79 million, down 1.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.73 per share and revenue of $1.22 billion. These totals would mark changes of -48.1% and +11.59%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for IRBT. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant within the past month. 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 23.09. For comparison, its industry has an average Forward P/E of 20.74, which means IRBT is trading at a premium to the group.

We can also see that IRBT currently has a PEG ratio of 1.54. 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. The Industrial Automation and Robotics industry currently had an average PEG ratio of 1.95 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 107, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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