T. Rowe Price (TROW) Registers a Bigger Fall Than the Market: Important Facts to Note

Core Viewpoint - T. Rowe Price (TROW) is experiencing a decline in stock performance, underperforming both the S&P 500 and the Finance sector, with upcoming financial results expected to show a decrease in EPS but an increase in revenue compared to the previous year [1][2]. Financial Performance - T. Rowe Price is expected to report an EPS of $2.41, reflecting a decrease of 6.23% from the prior-year quarter [2]. - Revenue is anticipated to be $1.83 billion, indicating a growth of 2.28% compared to the same quarter last year [2]. - For the annual period, earnings are projected at $9.18 per share, down 1.61% from last year, while revenue is expected to reach $7.17 billion, up 1.1% [3]. Analyst Estimates - Recent modifications to analyst estimates for T. Rowe Price are crucial as they indicate changing business trends, with positive changes suggesting a favorable outlook on business health and profitability [4]. - The Zacks Consensus EPS estimate has increased by 0.67% over the past month, and T. Rowe Price currently holds a Zacks Rank of 3 (Hold) [6]. Valuation Metrics - T. Rowe Price is trading at a Forward P/E ratio of 11.41, which is lower than the industry average of 12.3 [7]. - The company has a PEG ratio of 2.71, compared to the Financial - Investment Management industry's average PEG ratio of 1.33 [8]. Industry Context - The Financial - Investment Management industry is ranked 147 out of over 250 industries, placing it in the bottom 41% [8]. - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9].