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In the latest market close, T. Rowe Price (TROW) reached $92.83, with a -0.23% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.08%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.52%.
The the stock of financial services firm has fallen by 14.24% in the past month, lagging the Finance sector's loss of 2.57% and the S&P 500's loss of 7.33%.
The investment community will be closely monitoring the performance of T. Rowe Price in its forthcoming earnings report. The company's upcoming EPS is projected at $2.15, signifying a 9.66% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.8 billion, up 2.91% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.14 per share and a revenue of $7.45 billion, signifying shifts of -2.04% and +4.98%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for T. Rowe Price. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.62% lower. T. Rowe Price is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that T. Rowe Price has a Forward P/E ratio of 10.18 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.9.
Also, we should mention that TROW has a PEG ratio of 2.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Financial - Investment Management industry was having an average PEG ratio of 0.99.
The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% of all 250+ industries.