Tim Coyne, T Rowe Price head of ETFs, joins CNBC's Bob Pisani on 'ETF Edge' to discuss how the market turbulence is helping flows into actively managed ETFs and T Rowe Price's actively managed fund offerings like the Capital Appreciation and Equity Research. Todd Sohn, Strategas head of ETFs, also joins the conversation.
T. Rowe (TROW) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.
In the closing of the recent trading day, T. Rowe Price (TROW) stood at $80.27, denoting a -1.7% change from the preceding trading day.
T. Rowe Price is undervalued, trading at ~10x earnings with a 5.3% dividend yield, and poised for flow stabilization and earnings growth. Management aims for flat to positive flows in 2025, driven by sticky retirement assets, early ETF momentum, and private market expansion. Competitive advantages include strong U.S. retirement system ties, efficient operations, and a research-first culture, supporting long-term performance and stability.
T. Rowe Price hits 52-week low, reflecting investors' concern over shifting economic conditions, stringent regulations and rising compliance costs.
T. Rowe Price stock is a buy due to its potential to thrive amid broad market overvaluation and possible investor shift towards actively managed ETFs. Despite challenges from passive ETFs, TROW's actively managed funds have historically outperformed the broad market, offering higher returns. TROW's current undervaluation, with lower P/E and P/FCF ratios compared to broad market averages, presents a compelling investment opportunity.
TROW's January AUM balance was $1.65 trillion. It experiences net outflows of $2.1 billion for the month.
The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. T. Rowe Price Group presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
T. Rowe Price's failure to innovate and shift to passive ETFs has led to significant underperformance compared to BlackRock and continuous net outflows. The company's adherence to active investing, despite the growing popularity of passive ETFs, has resulted in a substantial gap in returns and market share. Despite a strong dividend yield and solid financial position, TROW's long-term growth prospects are bleak due to changing investor preferences.
TROW's fourth-quarter 2024 results miss estimates on higher expenses. Yet, higher net revenues driven by a rise in AUM are a positive.
T. Rowe Price Group, Inc. (NASDAQ:TROW ) Q4 2024 Earnings Conference Call February 5, 2025 8:00 AM ET Company Participants Linsley Carruth - Director of IR Rob Sharps - Chair, CEO and President Jen Dardis - CFO Eric Veiel - Head of Global Investments Conference Call Participants Bill Katz - TD Cowen Benjamin Budish - Barclays Capital Glenn Schorr - Evercore ISI Craig Seigenthaler - Bank of America Dan Fannon - Jefferies Patrick Davitt - Autonomous Research Ken Worthington - JPMorgan Brennan Hawken - UBS Alexander Blostein - Goldman Sachs Operator Good morning. My name is Daniel, and I will be your conference facilitator today.
Although the revenue and EPS for T. Rowe (TROW) give a sense of how its business performed in the quarter ended December 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.