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T. Rowe Price (TROW) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, T. Rowe Price (TROW) closed at $121.10, marking a +1.72% move from the previous day. This move outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.07%.

Coming into today, shares of the financial services firm had gained 8.34% in the past month. In that same time, the Finance sector gained 4.65%, while the S&P 500 gained 7.25%.

Investors will be hoping for strength from T. Rowe Price as it approaches its next earnings release, which is expected to be July 28, 2022. In that report, analysts expect T. Rowe Price to post earnings of $2.24 per share. This would mark a year-over-year decline of 32.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.71 billion, down 11.49% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.08 per share and revenue of $6.74 billion, which would represent changes of -28.78% and -12.19%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for T. Rowe Price. Recent revisions tend to reflect the latest near-term business trends. 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. Within the past 30 days, our consensus EPS projection has moved 13.12% lower. T. Rowe Price currently has a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, T. Rowe Price is holding a Forward P/E ratio of 13.11. This represents a premium compared to its industry's average Forward P/E of 9.71.

We can also see that TROW currently has a PEG ratio of 2.21. 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. TROW's industry had an average PEG ratio of 1.22 as of yesterday's close.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 10% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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