For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock’s true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
T. Rowe Price (TROW)
Founded in 1937 and headquartered in Baltimore, T. Rowe Price Group, Inc. is a global investment management organization that provides a broad array of mutual funds, sub-advisory services and separate account management for individual and institutional investors, retirement plans and financial intermediaries. Through its subsidiaries, the company manages separate client-focused equity, fixed income and balanced portfolios along with mutual funds. Its client base includes individual investors, defined contribution retirement plans, institutional investors and third-party distributors, among others. The company operates worldwide from the United States, England, Luxembourg, Australia, Hong Kong, Japan and Singapore.
TROW sits at a Zacks Rank #2 (Buy), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Financial – Investment Management industry’s P/E of 11.4X, shares of T. Rowe Price are trading at a forward P/E of 12.5X. TROW also has a PEG Ratio of 1.7, a Price/Cash Flow ratio of 11.3X, and a Price/Sales ratio of 3.7X.
Value investors don’t just pay attention to a company’s valuation ratios; positive earnings play a crucial role, too. Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.27 to $9.01 per share. TROW has an average earnings surprise of 12.4%.
Investors should take the time to consider TROW for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report
