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Headquartered in Sarasota, Florida, Roper Technologies, Inc. (ROP) designs, manufactures, and distributes engineered products and software solutions, serving various markets such as legal, healthcare, government, and more. Roper is currently valued at $59 billion by market cap.
Shares of this software company have underperformed the broader market over the past year. ROP has gained 11% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.1%. In 2024, ROP stock is up marginally, surpassing SPX’s 17.2% rise on a YTD basis.
Zooming in further, ROP’ has also lagged behind the SPDR S&P Software & Services ETF (XSW), which has gained about 18.5% over the past year and 2.9% on a YTD basis.
On Jul. 24, ROP stock dropped 7.4% after the company released its Q2 earnings report. Its profit amounted to $337.1 million, with adjusted earnings of $4.48 per share, beating Wall Street's expectation of $4.46 per share. The company’s revenue stood at $1.72 billion, meeting forecasts. For the current fiscal year, Roper Technologies expects EPS between $18.10 and $18.25, up from the previous guidance range of $18.05 to $18.25.
For the current fiscal year, ending in December, analysts expect ROP’s EPS to grow 8.7% annually to $18.16 on a diluted basis. The company’s earnings surprise history is solid. It beat the consensus estimate in each of the last four quarters.
Among the 14 analysts covering ROP stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
This configuration is more bullish than two months ago when seven analysts assigned the stock a “Strong Buy.”
On Aug. 16, RBC Capital raised Roper Technologies' price target to $675, which is also the Street-high target price, and maintained its “Outperform” rating. The brokerage firm noted that the company’s $1.5 billion Transact Campus acquisition complements its CBORD business, expanding its security solutions footprint.
The mean price target of $600.69 represents a 9.2% premium to ROP’s current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
