Roper Technologies Stock Testing Price Floor – Buy Now?

ROP: Roper Technologies logo
ROP
Roper Technologies

Roper Technologies (ROP) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($422.26 – $466.70), levels from which it has bounced meaningfully before. In the last 10 years, Roper Technologies stock received buying interest at this level 4 times and subsequently went on to generate 10.8% in average peak returns.

  Peak Return Days to Peak Return
11/10/2022 3.3% 62
2/1/2023 3.4% 82
4/26/2023 9.2% 62
6/27/2023 27.4% 617

But is the price action enough alone? It certainly helps if the fundamentals check out. For ROP Read Buy or Sell ROP Stock to see how convincing this buy opportunity might be.

Love the ROP stock? Great. But don’t get too attached. Stocks crash. High Quality Portfolio lets you navigate that risk.

Here are some quick data points for Roper Technologies that should help decision:

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  • Revenue Growth: 14.0% LTM and 14.1% last 3 year average.
  • Cash Generation: Nearly 31.2% free cash flow margin and 28.1% operating margin LTM.
  • Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for ROP was 13.6%.
  • Valuation: ROP stock trades at a PE multiple of 30.5

For quick background, Roper Technologies provides software and engineered solutions for management, diagnostics, transportation, financial analytics, compliance, and foodservice operations across various industries.

  ROP S&P Median
Sector Information Technology
Industry Electronic Equipment & Instruments
PE Ratio 30.5 23.5

   
LTM* Revenue Growth 14.0% 6.0%
3Y Average Annual Revenue Growth 14.1% 5.5%
Min Annual Revenue Growth Last 3Y 13.6% -0.0%

   
LTM* Operating Margin 28.1% 18.8%
3Y Average Operating Margin 28.3% 18.2%
LTM* Free Cash Flow Margin 31.2% 13.6%

*LTM: Last Twelve Months

What Is Stock-Specific Risk If The Market Crashes?

ROP isn’t immune to big selloffs. It fell about 34% in the Dot-Com Bubble and 50% during the Global Financial Crisis. The 2018 correction trimmed roughly 21%, while the Covid pandemic caused a 35% dip. Even the recent inflation shock led to a 28% drop. The stock has solid fundamentals, but when the market turns, it can still face steep declines.

But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read ROP Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.