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Bear Of The Day: Rogers Corporation (ROG)

By Zacks Investment ResearchStock MarketsMar 12, 2020 06:00AM ET
www.investing.com/analysis/bear-of-the-day-rogers-corporation-rog-200515360
Bear Of The Day: Rogers Corporation (ROG)
By Zacks Investment Research   |  Mar 12, 2020 06:00AM ET
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Rogers Corporation (ROG) is a Zacks Rank #5 (Strong Sell) that is a global leader in engineered materials to power, protect and connect the world. The company delivers high-performance solutions that enable clean energy, internet connectivity, safety applications and other technologies.

Stock Off 50% since May

Everything was going right for Rogers early last year. The momentum in the markets helped carry the stock over $200. However, a string of earnings that barely beat the bottom-line number helped bring in selling. The when the Coronavirus fears hit, Rogers exposure to the global economy helped the stock even lower, over 50% from highs.

Earnings slowing

Early in 2019, Rogers was seeing earnings beats in the double digits. However, the last three quarters the company hasn’t been able to get much more then a 10% beat to the upside. While a beat is always better than a miss, the slowing of earnings growth has caused the stock to sell off after the big run.

Estimates Headed Lower

Perhaps the biggest issue with the stock is how drastic the analyst’s estimates are falling. Over the last month, Rogers has seen the current quarter’s estimates fall from $1.26 to $0.85, a 32% fall. Additionally, the current year has seen a 19% drop over the same time frame.

If these numbers continue to fall, I would expect the stock to follow suit.

In Summary

Rogers has two things working against the stock bouncing back. First, we have earnings estimates falling across the all-time frames. Until these numbers improve, investors will be net sellers. Additionally, the Coronavirus is attacking global companies and their ability to business. If the virus continues to spread, Rogers stock will continue to fall.


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Rogers Corporation (ROG): Free Stock Analysis Report

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Bear Of The Day: Rogers Corporation (ROG)
 

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Bear Of The Day: Rogers Corporation (ROG)

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