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T. Rowe Price (TROW) Stock Drops Despite Market Gains: Important Facts to Note

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The most recent trading session ended with T. Rowe Price (TROW - Free Report) standing at $115.07, reflecting a -0.42% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 0.35%.

The the stock of financial services firm has risen by 3.54% in the past month, leading the Finance sector's gain of 0.75% and the S&P 500's gain of 3.25%.

The investment community will be paying close attention to the earnings performance of T. Rowe Price in its upcoming release. The company is predicted to post an EPS of $2.19, indicating an 8.42% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.78 billion, up 10.29% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $8.80 per share and a revenue of $7.12 billion, demonstrating changes of +15.94% and +10.16%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for T. Rowe Price. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.65% higher. At present, T. Rowe Price boasts a Zacks Rank of #1 (Strong Buy).

Digging into valuation, T. Rowe Price currently has a Forward P/E ratio of 13.13. This signifies a premium in comparison to the average Forward P/E of 10.25 for its industry.

It's also important to note that TROW currently trades at a PEG ratio of 1.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TROW's industry had an average PEG ratio of 0.91 as of yesterday's close.

The Financial - Investment Management industry is part of the Finance sector. With its current Zacks Industry Rank of 141, this industry ranks in the bottom 45% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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