Company Overview and Market Performance
Sarasota, Florida-based Roper Technologies, Inc. (ROP) is known for designing and developing software and technology-enabled products. With a market cap of $60.5 billion, the firm offers a diverse range of products, including industrial controls, fluid handling systems, pumps, medical devices, analytical instruments, RFID technology, and software solutions.
Yearly Gains Fall Short Against Market Trends
Despite its achievements, ROP’s shares have not fared well compared to the broader market over the past year. The company’s stock has gained only 7.5%, while the S&P 500 Index ($SPX) has surged nearly 31.8%. Looking at 2024, ROP’s stock shows a modest rise of 3.5%, contrasting sharply with the SPX’s impressive 25.8% increase year-to-date.
Comparison with Sector Peers
When focusing specifically on the SPDR S&P Software & Services ETF (XSW), ROP’s challenges become even clearer. The ETF has enjoyed a remarkable 44.3% increase in the past year and is up 29% year-to-date, far outpacing ROP’s performance.
Q3 Results Paint a Positive Picture
On October 23, ROP reported its Q3 results, with shares closing down more than 1%. The reported adjusted earnings per share (EPS) of $4.62 exceeded Wall Street’s expectation of $4.53. ROP’s revenue reached $1.8 billion, surpassing the forecast of $1.7 billion. For Q4, the company predicts adjusted EPS will range between $4.70 and $4.74, and expects full-year EPS to fall between $18.21 and $18.25.
Analysts’ Expectations and Consensus Ratings
For the fiscal year ending in December, analysts anticipate ROP’s EPS to grow 9.2% to $18.24 on a diluted basis. Notably, ROP has consistently beaten earnings expectations, delivering surprises in each of the last four quarters. Among the 14 analysts monitoring ROP, the consensus rating is a “Moderate Buy,” comprising eight “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
Future Outlook and Price Targets
On October 24, Jefferies Financial Group Inc. (JEF) reiterated a “Buy” rating on ROP, setting a price target of $635. This target suggests a potential upside of 12.5% from the current stock price. The average price target among analysts stands at $607.08, indicating a 7.6% premium over ROP’s current price. The highest price target of $666 implies an upside potential of 18%.
On the date of publication, Neha Panjwani did not have positions in any of the securities mentioned in this article. All information and data in this article is strictly for informational purposes. For further details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
