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IRobot (IRBT) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, iRobot (IRBT) closed at $101.20, marking a +1.45% move from the previous day. This change outpaced the S&P 500's 0.02% gain on the day.

Coming into today, shares of the robotics technology company had gained 3.67% in the past month. In that same time, the Industrial Products sector lost 1.33%, while the S&P 500 gained 0.04%.

IRBT will be looking to display strength as it nears its next earnings release. On that day, IRBT is projected to report earnings of $0.30 per share, which would represent a year-over-year decline of 71.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $355.4 million, up 26.98% from the year-ago period.

IRBT's full-year Zacks Consensus Estimates are calling for earnings of $3.13 per share and revenue of $1.68 billion. These results would represent year-over-year changes of -24.4% and +17.74%, respectively.

It is also important to note the recent changes to analyst estimates for IRBT. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. IRBT is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, IRBT is holding a Forward P/E ratio of 31.91. This valuation marks a premium compared to its industry's average Forward P/E of 30.88.

Meanwhile, IRBT's PEG ratio is currently 2.37. 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. Industrial Automation and Robotics stocks are, on average, holding a PEG ratio of 2.37 based on yesterday's closing prices.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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