T. Rowe Price Anticipates Rising EPS and Revenue Growth

A report reveals T. Rowe Price expects an EPS increase of 6.45% and revenue growth of 8.71%. Despite a monthly decline in stock value, strong earnings estimates may bolster investor confidence in upcoming trading sessions.

Date: 10-09-2024

AI Rating: 7

T. Rowe Price (TROW) has shown resilience with a current trading price of $103.54, which reflects a +1.82% change in the latest session, outpacing the broader market's performance. However, it is crucial to note that the stock has suffered a decline of 3.47% over the past month, underperforming both the Finance sector's gain of 5.48% and the S&P 500's gain of 3.48%.

Looking ahead, the company is projected to announce an Earnings Per Share (EPS) of $2.31, a promising increase of 6.45% relative to the same quarter last year. This positive expectation is reinforced by a forecasted revenue of $1.82 billion, which indicates an 8.71% growth rate compared to the prior year's quarter.

For the annual trajectory, the Zacks Consensus Estimates project an annual EPS of $9, suggesting a substantial shift of +18.58% from the previous year, and a revenue of $7.14 billion, translating to a +10.59% change from last year.

This optimism in EPS and revenue growth may enhance investor sentiment, especially if recent upward revisions to analyst estimates persist, as such estimates often correlate with more favorable stock performance. The Zacks Rank currently assigns T. Rowe Price a status of #3 (Hold), which reflects a neutral outlook despite recent minimal positive adjustments to EPS estimates.

Furthermore, the Forward P/E ratio for T. Rowe Price stands at 11.3, which positions it at a premium compared to the industry's Forward P/E of 10.82. The PEG ratio comes in at 1.62, indicating the company's earnings growth expectations are higher than industry averages; the Financial - Investment Management industry pegs an average PEG ratio of 1.04.

These metrics from the Zacks Rankings and ratios suggest that while T. Rowe Price faces recent underperformance, its growth potential is attracting investor interest, emphasizing the relevance of observing upcoming earnings disclosures closely.

Stocks: TROW