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

Zacks Equity Research
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

iRobot (IRBT) closed at $117.69 in the latest trading session, marking a +1.06% move from the prior day. This move outpaced the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.82%, and the tech-heavy Nasdaq gained 0.78%.

Prior to today's trading, shares of the robotics technology company had lost 6.88% over the past month. This has lagged the Industrial Products sector's loss of 0.65% and the S&P 500's gain of 1.25% in that time.

IRBT will be looking to display strength as it nears its next earnings release, which is expected to be April 23, 2019. On that day, IRBT is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 3.03%. Meanwhile, our latest consensus estimate is calling for revenue of $252.34 million, up 16.25% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.03 per share and revenue of $1.30 billion, which would represent changes of -42.4% and +18.81%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for IRBT. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. IRBT is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that IRBT has a Forward P/E ratio of 38.46 right now. Its industry sports an average Forward P/E of 22.16, so we one might conclude that IRBT is trading at a premium comparatively.

We can also see that IRBT currently has a PEG ratio of 1.88. 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. Industrial Automation and Robotics stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% 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.


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