Advertisement
investing

The Best Stock in Maryland: T. Rowe Price

We analyzed publicly traded companies based in the Old Line state to identify the best stock in Maryland to buy now.

We scoured the nation to identify the best stock in every state. T. Rowe Price (symbol TROW) is the publicly traded company we picked in Maryland. The company headquarters is located in Baltimore.

A word of caution: Since we selected a single stock from each state (plus one from D.C), and choices in some states are sparse, a few of our picks are best suited to investors comfortable with a higher degree of risk. This is not necessarily one of our 51 favorite stocks in the entire U.S., in other words.

T. Rowe Price by the Numbers

  • Headquarters: Baltimore
  • Share price: $73.20
  • Market value: $17.7 billion
  • Price-earnings ratio: 15
Advertisement - Article continues below

(Prices and data are as of June 22, 2017)

Like all active asset managers these days, T. Rowe Price faces pressure to win investor dollars that are increasingly finding their way to passively managed mutual funds and exchange-traded funds. But the venerable fund house’s first-quarter results were still respectable. The company posted a 12% increase in sales over the same quarter last year, as assets under management rose 16% and investment advisory fees rose 14%. (Advisory fees account for more than 80% of the firm’s annual revenues.) Value Line analyst Frederick Harris expects earnings growth of 12% this year and a more modest 4% in 2018. But the performance of T. Rowe’s funds is encouraging. Through March, 82%, 79% and 85% of T. Rowe’s mutual funds beat their peers on a three-, five-, and 10-year basis, respectively.

The funds’ strong relative performance should continue to attract investor assets, says CFRA analyst David Holt. And because about two-thirds of the company’s managed assets are in retirement accounts, he adds, T. Rowe boasts a higher rate of asset retention than that of many competitors. He rates the stock a “buy,” with a 12-month price target of $79. Following a 5.6% bump, the company’s quarterly dividend stands at 57 cents per share, for a yield of 3.1%.

Advertisement
Advertisement

Most Popular

What Trump's Payroll Tax Cut Will Mean for You
Tax Breaks

What Trump's Payroll Tax Cut Will Mean for You

President Trump issued an executive order to suspend the collection of Social Security payroll taxes. How much could it save you?
August 13, 2020
5 Tips to Minimize Your Taxes in Retirement
tax planning

5 Tips to Minimize Your Taxes in Retirement

Don’t pay more than you have to. It all starts with a thorough understanding of the basics of how retirement income is taxed.
August 2, 2020
10 Things to Know Before Going to the Hospital (from a Legal Perspective)
personal finance

10 Things to Know Before Going to the Hospital (from a Legal Perspective)

A trip to the ER can be chaotic and scary, but getting your ducks in a row now can definitely help.
August 11, 2020

Recommended

Bonds: 10 Things You Need to Know
Investing for Income

Bonds: 10 Things You Need to Know

Bonds can be more complex than stocks, but it's not hard to become a knowledgeable fixed-income investor.
July 22, 2020
Kip ETF 20: The Best Cheap ETFs
ETFs

Kip ETF 20: The Best Cheap ETFs

You can build a solid core for your portfolio and explore new opportunities with our favorite low-cost exchange-traded funds.
July 28, 2020
Metropolitan West Corporate Bond Has a Bright Future
Making Your Money Last

Metropolitan West Corporate Bond Has a Bright Future

This new-ish corporate bond fund is comanaged by familiar faces.
July 23, 2020