T. Rowe Price trades at $110.54 and has moved in lockstep with the market. Its shares have returned 17.1% over the last six months while the S&P 500 has gained 12.9%.
Is now the time to buy T. Rowe Price, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it’s free.
Why Is T. Rowe Price Not Exciting?
We’re passing on T. Rowe Price for now. Here are two reasons why TROW doesn’t excite us, plus one stock we’d rather own.
1. Long-Term Revenue Growth Disappoints
A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.
Unfortunately, T. Rowe Price’s 1.5% annualized revenue growth over the last five years was weak. This fell short of our benchmarks.
2. EPS Trending Down
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Sadly for T. Rowe Price, its EPS declined by 2.5% annually over the last five years while its revenue grew by 1.5%. This tells us the company became less profitable on a per-share basis as it expanded.
Final Judgment
T. Rowe Price isn’t a terrible business, but it doesn’t pass our bar. That said, the stock currently trades at 10.8× forward P/E (or $110.54 per share). Beauty is in the eye of the beholder, but we don’t really see a big opportunity at the moment. We’re fairly confident there are better stocks to buy right now. We’d suggest looking at our favorite semiconductor picks and shovels play.
Stocks We Would Buy Instead of T. Rowe Price
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Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
