In the latest trading session, iRobot (IRBT - Free Report) closed at $59, marking a +1.55% move from the previous day. This move outpaced the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.05%.
Coming into today, shares of the robotics technology company had lost 4.41% in the past month. In that same time, the Industrial Products sector gained 6.57%, while the S&P 500 gained 3.85%.
IRBT will be looking to display strength as it nears its next earnings release, which is expected to be October 22, 2019. 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%. 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 revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. IRBT is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, IRBT is currently trading at a Forward P/E ratio of 21.31. For comparison, its industry has an average Forward P/E of 19.99, which means IRBT is trading at a premium to the group.
It is also worth noting that IRBT currently has a PEG ratio of 1.42. 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 1.9 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 52, putting it in the top 21% 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.
To follow IRBT in the coming trading sessions, be sure to utilize Zacks.com.