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

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iRobot (IRBT) closed the most recent trading day at $93.53, moving -1.55% from the previous trading session. This move lagged the S&P 500's daily gain of 1.4%.

Heading into today, shares of the robotics technology company had gained 0.7% over the past month, outpacing the Industrial Products sector's loss of 4.34% and lagging the S&P 500's gain of 1.07% in that time.

Investors will be hoping for strength from IRBT as it approaches its next earnings release. The company is expected to report EPS of $0.30, down 71.7% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $355.4 million, up 26.98% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.13 per share and revenue of $1.68 billion. These totals would mark changes of -24.4% and +17.74%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for IRBT. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. IRBT is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that IRBT has a Forward P/E ratio of 30.39 right now. Its industry sports an average Forward P/E of 29.94, so we one might conclude that IRBT is trading at a premium comparatively.

It is also worth noting that IRBT currently has a PEG ratio of 2.26. 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. The Industrial Automation and Robotics industry currently had an average PEG ratio of 2.26 as of yesterday's close.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 16% 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.

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