T. Rowe Price Target Retirement 2040 Fund (TRHRX) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
T. Rowe Price Target Retirement 2040 Fund (TRHRX) trades at $19.37. T. Rowe Price Target Retirement 2040 Fund invests in a diversified portfolio of T. Rowe Price stock and bond mutual funds. Market cap: $455M, Sector: Financial services.
Price as of Aug 21, 2026 · Last analyzed: Mar 17, 2026Analyst Coverage for TRHRX: TRHRX does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates TRHRX against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
Not enough scored data yet to form a council read on TRHRX.
How is this calculated? →T. Rowe Price Target Retirement 2040 Fund (TRHRX) Financial Services Profile
T. Rowe Price Target Retirement 2040 Fund offers a diversified, multi-asset class investment vehicle designed for individuals planning to retire around the year 2040. The fund strategically allocates assets across various T. Rowe Price mutual funds, providing a simplified approach to retirement savings within the asset management sector.
What Is the Investment Thesis for TRHRX?
T. Rowe Price Target Retirement 2040 Fund presents a compelling investment option for individuals seeking a diversified, professionally managed retirement solution. With a dividend yield of 6.05%, the fund offers an attractive income stream while providing exposure to a broad range of asset classes. The fund's strategic asset allocation, managed by T. Rowe Price, aims to balance growth and risk, aligning with the long-term investment horizon of retirement savers. The fund's expense ratio and performance relative to its peers will be critical factors to monitor. The ongoing shift towards passive investing and the increasing demand for target-date funds could drive further growth for TRHRX. However, potential market volatility and changes in interest rates could impact the fund's performance.
Based on FMP financials and quantitative analysis
TRHRX Key Highlights
Market Cap of $455M indicates the fund's size and relative stability within the asset management landscape.
- Profit Margin of 11.6% reflects the fund's efficiency in generating profits from its operations.
- Gross Margin of 59.1% highlights the fund's ability to manage its expenses effectively.
- Beta of 1.02 suggests that the fund's volatility is similar to the overall market.
- Dividend Yield of 6.05% provides an attractive income stream for investors, particularly those seeking retirement income.
Who Are TRHRX's Competitors?
TRHRX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| FRA BlackRock Floating Rate Income Strategies Fund, Inc. | $10.92 | -0.64% | $387M | 47 |
| RPGRX T. Rowe Price Target Retirement 2035 Fund | $17.67 | -0.28% | $515M | 46 |
| RPTFX T. Rowe Price Target Retirement 2045 Fund | $21.27 | -0.37% | $478M | 46 |
| SWHRX Schwab Target 2025 Fund | $15.46 | -0.45% | $381M | 46 |
| TRFFX T. Rowe Price Target Retirement 2055 Fund | $23.48 | -0.42% | $319M | 46 |
| SOR Source Capital, Inc. | $46.29 | -0.92% | $381M | 71 |
| NCDL Nuveen Churchill Direct Lending Corp. | $12.35 | +0.00% | $610M | 86 |
| CAF Morgan Stanley China A Share Fund, Inc. | $19.33 | -1.23% | $325M | 87 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are TRHRX's Key Strengths?
Diversified portfolio of underlying T. Rowe Price mutual funds.
- Target-date strategy provides a built-in asset allocation glide path.
- Strong brand reputation and investment expertise of T. Rowe Price.
- Convenient and simplified investment solution for retirement savers.
What Are TRHRX's Weaknesses?
Performance is dependent on the performance of the underlying T. Rowe Price funds.
- May not be suitable for investors with specific investment preferences or risk tolerances.
- Subject to market volatility and interest rate risk.
- Fees can be higher compared to passively managed index funds.
What Could Drive TRHRX Stock Higher?
Continued growth in assets under management (AUM) driven by investor demand for target-date funds.
- Positive performance of the underlying T. Rowe Price mutual funds.
- Potential for increased adoption of target-date funds in retirement plans.
- Launch of new target-date fund offerings with innovative features.
What Are the Key Risks for TRHRX?
Financial-distress signal — its Altman Z-Score of 0.47 sits in the distress zone (elevated bankruptcy risk).
- Market volatility and economic downturns could negatively impact fund performance.
- Changes in interest rates could affect the value of fixed income investments.
- Competition from other asset managers and target-date fund providers.
- Regulatory changes and tax law changes could impact the fund's structure and performance.
- Dependence on the performance of the underlying T. Rowe Price mutual funds.
What Are the Growth Opportunities for TRHRX?
- Expansion of Target-Date Fund Offerings: T. Rowe Price can capitalize on the growing demand for target-date funds by expanding its offerings to cater to different retirement dates and risk profiles. By innovating and tailoring its target-date fund solutions, T. Rowe Price can attract a wider range of investors and increase its market share. This includes offering customized glide paths and incorporating ESG factors into the investment process.
- Strategic Partnerships and Distribution Channels: T. Rowe Price can forge strategic partnerships with retirement plan providers, financial advisors, and other distribution channels to expand its reach and access new clients. By leveraging these partnerships, T. Rowe Price can increase the visibility and accessibility of its target-date funds, driving further growth. This includes partnering with fintech platforms to offer digital retirement solutions and expanding its presence in underserved markets.
- Enhanced Investor Education and Engagement: T. Rowe Price can enhance its investor education and engagement efforts to promote the benefits of target-date funds and build stronger relationships with its clients. By providing clear and concise information about the fund's investment strategy, risk profile, and performance, T. Rowe Price can increase investor confidence and loyalty. This includes developing interactive tools and resources to help investors understand their retirement needs and make informed investment decisions.
- Technological Innovation and Digital Transformation: T. Rowe Price can invest in technological innovation and digital transformation to improve its operational efficiency, enhance the investor experience, and drive growth. By leveraging data analytics, artificial intelligence, and other emerging technologies, T. Rowe Price can personalize its services, optimize its investment strategies, and streamline its operations. This includes developing mobile apps and online platforms to provide investors with seamless access to their accounts and investment information.
- Global Expansion and Diversification: T. Rowe Price can expand its global presence and diversify its investment offerings to tap into new markets and growth opportunities. By offering target-date funds in international markets and incorporating global assets into its investment strategies, T. Rowe Price can diversify its revenue streams and reduce its reliance on the U.S. market. This includes establishing partnerships with local asset managers and adapting its products to meet the specific needs of international investors.
What Threats Does TRHRX Face?
- Increasing competition from other asset managers and target-date fund providers.
- Shift towards passive investing and lower fees.
- Market volatility and economic downturns.
- Changes in regulations and tax laws.
What Are TRHRX's Competitive Advantages?
- Strong brand reputation and investment expertise of T. Rowe Price.
- Diversified portfolio of underlying T. Rowe Price mutual funds.
- Target-date strategy provides a built-in asset allocation glide path.
- Convenient and simplified investment solution for retirement savers.
What Does TRHRX Do?
T. Rowe Price Target Retirement 2040 Fund is a part of the T. Rowe Price fund family, designed to provide investors with a diversified, all-in-one retirement savings solution. The fund operates by investing in a mix of other T. Rowe Price mutual funds, spanning various asset classes and sectors, including both stocks and bonds. This approach aims to provide a balance of growth potential and risk management suitable for individuals with a target retirement date around the year 2040. The fund assumes a retirement age of 65, guiding its asset allocation strategy as it approaches the target date. As the target date nears, the fund's asset allocation will gradually shift towards a more conservative mix, reducing exposure to equities and increasing exposure to fixed income investments. This glide path strategy is intended to help preserve capital as investors approach retirement. T. Rowe Price, as the parent company, leverages its extensive research capabilities and investment expertise to manage the underlying funds within the Target Retirement 2040 Fund. The fund is designed to be a convenient and diversified option for retirement savers who prefer a hands-off approach to investment management.
What Products and Services Does TRHRX Offer?
- Invests in a diversified portfolio of other T. Rowe Price stock and bond mutual funds.
- Manages assets based on a specific retirement year (target date 2040).
- Assumes a retirement age of 65 for its target-date strategy.
- Provides a balanced approach to growth potential and risk management.
- Gradually shifts asset allocation towards a more conservative mix as the target date nears.
- Offers a convenient, all-in-one retirement savings solution.
How Does TRHRX Make Money?
- Generates revenue through management fees charged on assets under management (AUM).
- Invests in other T. Rowe Price mutual funds, creating a diversified portfolio.
- Employs a target-date strategy, adjusting asset allocation over time.
- Offers a simplified investment solution for retirement savers.
What Industry Does TRHRX Operate In?
T. Rowe Price Target Retirement 2040 Fund operates within the asset management industry, which is characterized by increasing competition and evolving investor preferences. The industry is experiencing a shift towards passive investing and lower fees, driven by the rise of ETFs and robo-advisors. Target-date funds like TRHRX are gaining popularity as they offer a convenient and diversified retirement savings solution. The competitive landscape includes both large asset managers and smaller, specialized firms. The growth of the asset management industry is closely tied to the overall performance of the financial markets and the increasing demand for retirement savings solutions.
Who Are TRHRX's Key Customers?
- Individuals planning to retire around the year 2040.
- Retirement savers seeking a diversified, all-in-one investment solution.
- Investors who prefer a hands-off approach to investment management.
- Individuals looking for a balance of growth potential and risk management.
Financial Health
T. Rowe Price Target Retirement 2040 Fund's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.47 places it in the distress zone, a signal of elevated financial risk.
TRHRX Financials
Bull Case vs Bear Case
Bull Case
- Diversified portfolio of underlying T. Rowe Price mutual funds.
- Target-date strategy provides a built-in asset allocation glide path.
- Strong brand reputation and investment expertise of T. Rowe Price.
- Convenient and simplified investment solution for retirement savers.
Bear Case
- Performance is dependent on the performance of the underlying T. Rowe Price funds.
- May not be suitable for investors with specific investment preferences or risk tolerances.
- Subject to market volatility and interest rate risk.
- Fees can be higher compared to passively managed index funds.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · August 2026
TRHRX Latest News
No recent news available for TRHRX.
TRHRX Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for TRHRX.
Price Targets
Wall Street price target analysis for TRHRX.
TRHRX MoonshotScore
What does this score mean?
The MoonshotScore rates TRHRX 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Common Questions About TRHRX (Financial Services)
What does T. Rowe Price Target Retirement 2040 Fund do?
T. Rowe Price Target Retirement 2040 Fund is designed as a diversified investment vehicle for individuals planning to retire around the year 2040. It operates by investing in a mix of other T. Rowe Price mutual funds, spanning various asset classes like stocks and bonds.
What are the main risks for TRHRX?
The main risks for TRHRX include market volatility, which can negatively impact the value of the underlying investments. Changes in interest rates can affect the value of fixed income securities held within the fund. The fund also faces competition from other asset managers and target-date fund providers. Furthermore, the fund's performance is dependent on the performance of the underlying T.
What are the key factors to evaluate for TRHRX?
Evaluate TRHRX on fundamentals, analyst consensus, and risk factors. T. Rowe Price Target Retirement 2040 Fund presents a compelling investment option for individuals seeking a diversified, professionally managed retirement solution. Not financial advice.
How frequently does TRHRX data refresh on this page?
TRHRX's price was last updated on Aug 21, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven TRHRX's recent stock price performance?
T. Rowe Price Target Retirement 2040 Fund (TRHRX) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified portfolio of underlying T. Rowe Price mutual funds. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider TRHRX overvalued or undervalued right now?
T. Rowe Price Target Retirement 2040 Fund (TRHRX) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research TRHRX before investing?
Before investing in T. Rowe Price Target Retirement 2040 Fund (TRHRX), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Why might investors consider adding TRHRX to a portfolio?
Key strength of T. Rowe Price Target Retirement 2040 Fund (TRHRX): Diversified portfolio of underlying T. Rowe Price mutual funds. Weigh rewards against risks and diversify. Not financial advice.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The information provided is based on available data and is for informational purposes only. It is not intended as investment advice.