IRobot (IRBT) Gains As Market Dips: What You Should Know

In the latest trading session, iRobot (IRBT) closed at $78.23, marking a +0.49% move from the previous day. This change outpaced the S&P 500's 1.12% loss on the day. Elsewhere, the Dow lost 0.88%, while the tech-heavy Nasdaq lost 1.07%.

Coming into today, shares of the robotics technology company had gained 4.65% in the past month. In that same time, the Industrial Products sector gained 1.46%, while the S&P 500 lost 0.59%.

IRBT will be looking to display strength as it nears its next earnings release. In that report, analysts expect IRBT to post earnings of $0.90 per share. This would mark a year-over-year decline of 27.42%. Meanwhile, our latest consensus estimate is calling for revenue of $314.03 million, up 8.51% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.45 per share and revenue of $1.23 billion, which would represent changes of -17.51% and +1.54%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for IRBT. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. IRBT is currently a Zacks Rank #3 (Hold).

Looking at its valuation, IRBT is holding a Forward P/E ratio of 31.8. For comparison, its industry has an average Forward P/E of 30.65, which means IRBT is trading at a premium to the group.

We can also see that IRBT currently has a PEG ratio of 2.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Industrial Automation and Robotics was holding an average PEG ratio of 3.45 at yesterday's closing price.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 231, which puts it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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