T. Rowe Price (TROW) ended the recent trading session at $112.40, demonstrating a +0.96% swing from the preceding day’s closing price. The stock outpaced the S&P 500’s daily gain of 0.27%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 0.26%.
Heading into today, shares of the financial services firm had gained 1.66% over the past month, outpacing the Finance sector’s loss of 5.28% and lagging the S&P 500’s gain of 2% in that time.
The upcoming earnings release of T. Rowe Price will be of great interest to investors. The company’s earnings report is expected on November 1, 2024. On that day, T. Rowe Price is projected to report earnings of $2.36 per share, which would represent year-over-year growth of 8.76%. Our most recent consensus estimate is calling for quarterly revenue of $1.84 billion, up 9.9% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.16 per share and revenue of $7.18 billion. These totals would mark changes of +20.69% and +11.1%, respectively, from 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. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 has moved 2.16% higher. At present, T. Rowe Price boasts a Zacks Rank of #2 (Buy).
Looking at valuation, T. Rowe Price is presently trading at a Forward P/E ratio of 12.16. For comparison, its industry has an average Forward P/E of 11.63, which means T. Rowe Price is trading at a premium to the group.
Also, we should mention that TROW has a PEG ratio of 1.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Financial – Investment Management industry currently had an average PEG ratio of 1.21 as of yesterday’s close.
The Financial – Investment Management industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 22, placing it within the top 9% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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