Momentum Stocks in Focus: T. Rowe Price Group, Inc. (NASDAQ: TROW)

On Friday, Shares of T. Rowe Price Group, Inc. (NASDAQ: TROW) declined -4.89% to $123.04. The stock recorded $122.64 as its minimum price and hit the max level of $129.72, during its most recent trading session. It traded total volume of 4,000,134 shares higher than the average volume of 1.78M shares. T. Rowe Price (TROW) came out with quarterly earnings of $2.62 per share, missing the Zacks Consensus Estimate of $2.76 per share. This compares to earnings of $3.01 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -5.07 Percent. A quarter ago, it was expected that this financial services firm would post earnings of $3.07 per share when it actually produced earnings of $3.17, delivering a surprise of 3.26Percent.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

  1. Rowe , which belongs to the Zacks Financial – Investment Management industry, posted revenues of $1.86B for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 0.56Percent. This compares to year-ago revenues of $1.83B. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

  1. Rowe shares have lost about 33.4.00 Percent since the beginning of the year versus the S&P 500’s decline of -12.20 Percent.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial – Investment Management is currently in the bottom 14.00 Percent of the 250 plus Zacks industries. Our research shows that the top 50.00 Percent of the Zacks-ranked industries outperform the bottom 50.00 Percent by a factor of more than 2 to 1.

One other stock from the same industry, Focus Financial Partners Inc. (FOCS), is yet to report results for the quarter ended March 2022. The results are expected to be released on May 5.

This company is expected to post quarterly earnings of $1.08 per share in its upcoming report, which represents a year-over-year change of +16.10 Percent. The consensus EPS estimate for the quarter has been revised 0.50 Percent lower over the last 30 days to the current level.

Focus Financial Partners Inc.’s revenues are expected to be $514.03M, up 30.4 Percent from the year-ago quarter.

TROW has the market capitalization of $29.94B and its EPS growth ratio for the past five years was 22.50%. The return on assets ratio of the Company was 26.10% while its return on investment ratio stands at 31.20%. Price to sales ratio was 3.90 while 73.90% of the stock was owned by institutional investors.

About Brad Watson

This is Brad Watson and I like to introduce myself as an adviser, in the Financial Stocks Sector. I worked independently as a self motivator and with the financial institute as financial adviser to invest in the financial sector for over 7 years in the developing countries by introducing new phases and ways to improve in the Financial sector. I analyze trading strategy, individual stocks, asset classes, market sectors, and risk to reward parameters in order to provide valuable insight to the community. I like to travel all over the globe to get new experience and provide by best services to the companies. As an adviser I like to work with new people to share and explore new ideas keeping in view minimizing the operating cost and giving the best final product through new Financial and minimizing the time of development.

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