T. Rowe Price (TROW) Surpasses Market Returns: Some Facts Worth Knowing

In the latest close session, T. Rowe Price (TROW) was up +1.71% at $105.83. The stock exceeded the S&P 500, which registered a gain of 0.2% for the day. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.04%.

Coming into today, shares of the financial services firm had lost 4.87% in the past month. In that same time, the Finance sector lost 4.84%, while the S&P 500 lost 0.35%.

Analysts and investors alike will be keeping a close eye on the performance of T. Rowe Price in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.61, indicating a 7.12% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.96 billion, indicating a 3.51% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.15 per share and revenue of $7.69 billion, indicating changes of +4.42% and +5.13%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for T Rowe Price. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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 has moved 0.04% lower. Currently, T. Rowe Price is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, T. Rowe Price is currently exchanging hands at a Forward P/E ratio of 10.26. This represents a discount compared to its industry average Forward P/E of 10.7.

It is also worth noting that TROW currently has a PEG ratio of 3.45. 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. As the market closed yesterday, the Financial - Investment Management industry was having an average PEG ratio of 1.

The Financial - Investment Management industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% 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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T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).