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Form N-CSR T. Rowe Price U.S. Equit For: Dec 31

February 22, 2024 10:26 AM EST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-07225

T. Rowe Price U.S. Equity Research Fund, Inc.

 

(Exact name of registrant as specified in charter)

100 East Pratt Street, Baltimore, MD 21202

 

(Address of principal executive offices)

David Oestreicher

100 East Pratt Street, Baltimore, MD 21202

 

(Name and address of agent for service)

Registrant’s telephone number, including area code: (410) 345-2000

Date of fiscal year end: December 31

Date of reporting period: December 31, 2023


Item 1. Reports to Shareholders

(a) Report pursuant to Rule 30e-1


Highlights
and
Market
Commentary
Management’s
Discussion
of
Fund
Performance
Performance
and
Expenses
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
December
31,
2023
Annual
Report
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
PRCOX
U.S.
Equity
Research
Fund
.
PACOX
U.S.
Equity
Research
Fund–
.
Advisor  Class
RRCOX
U.S.
Equity
Research
Fund–
.
R  Class
PCCOX
U.S.
Equity
Research
Fund–
.
I  Class
PCUZX
U.S.
Equity
Research
Fund–
.
Z Class
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
HIGHLIGHTS
The
U.S.
Equity
Research
Fund
outperformed
the
S&P
500
Index
during
the
12-month
period
ended
December
31,
2023.
Stock
selection
in
eight
of
11
sectors
contributed
to
relative
returns
during
the
reporting
period.
Information
technology,
financials,
health
care,
and
consumer
discretionary
were
the
fund’s
largest
sector
allocations
in
absolute
terms.
There
is
a
broad
range
of
potential
outcomes
for
the
market
moving
forward,
and
while
it’s
not
entirely
clear
what
the
path
will
be,
we
believe
the
fund
can
help
cushion
against
this
uncertainty
as
it
has
done
in
the
past
in
a
variety
of
market
environments.
Log
in
to
your
account
at
troweprice.com
for
more
information.
*
An
account
service
fee
will
be
charged
annually
for
each
T.
Rowe
Price
mutual
fund
account
unless
you
meet
criteria
for
a
fee
waiver.
Go
to
troweprice.com/personal-investing/help/fees-and-
minimums.html
to
learn
more
about
this
account
service
fee,
including
other
ways
to
waive
it.
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
Market
Commentary
1
Dear
Shareholder
Global
stock
and
bond
indexes
were
broadly
positive
during
2023
as
most
economies
managed
to
avoid
the
recession
that
was
widely
predicted
at
the
start
of
the
year.
Technology
companies
benefited
from
investor
enthusiasm
for
artificial
intelligence
developments
and
led
the
equity
rally,
while
fixed
income
benchmarks
rebounded
late
in
the
year
amid
falling
interest
rates.
For
the
12-month
period,
the
technology-oriented
Nasdaq
Composite
Index
rose
about
43%,
reaching
a
record
high
and
producing
the
strongest
result
of
the
major
benchmarks.
Growth
stocks
outperformed
value
shares,
and
developed
market
stocks
generally
outpaced
their
emerging
markets
counterparts.
Currency
movements
were
mixed
over
the
period,
although
a
weaker
dollar
versus
major
European
currencies
was
beneficial
for
U.S.
investors
in
European
securities.
Within
the
S&P
500
Index,
which
finished
the
year
just
short
of
the
record
level
it
reached
in
early
2022,
the
information
technology,
communication
services,
and
consumer
discretionary
sectors
were
all
lifted
by
the
tech
rally
and
recorded
significant
gains.
A
small
group
of
tech-oriented
mega-cap
companies
helped
drive
much
of
the
market’s
advance.
Conversely,
the
defensive
utilities
sector
had
the
weakest
returns
in
the
growth-focused
environment,
and
the
energy
sector
also
lost
ground
amid
declining
oil
prices.
The
financials
sector
bounced
back
from
the
failure
of
three
large
regional
banks
in
the
spring
and
was
one
of
the
top-performing
segments
in
the
second
half
of
the
year.
The
U.S.
economy
was
the
strongest
among
the
major
markets
during
the
period,
with
gross
domestic
product
growth
coming
in
at
4.9%
in
the
third
quarter,
the
highest
since
the
end
of
2021.
Corporate
fundamentals
were
also
broadly
supportive.
Year-over-year
earnings
growth
contracted
in
the
first
and
second
quarters
of
2023,
but
results
were
better
than
expected,
and
earnings
growth
turned
positive
again
in
the
third
quarter.
Markets
remained
resilient
despite
a
debt
ceiling
standoff
in
the
U.S.,
the
outbreak
of
war
in
the
Middle
East,
the
continuing
conflict
between
Russia
and
Ukraine,
and
a
sluggish
economic
recovery
in
China.
Inflation
remained
a
concern,
but
investors
were
encouraged
by
the
slowing
pace
of
price
increases
as
well
as
the
possibility
that
the
Federal
Reserve
was
nearing
the
end
of
its
rate-hiking
cycle.
The
Fed
held
rates
steady
after
raising
its
short-term
lending
benchmark
rate
to
a
target
range
of
5.25%
to
5.50%
in
July,
the
highest
level
since
March
2001,
and
at
its
final
meeting
of
the
year
in
December,
the
central
bank
indicated
that
there
could
be
three
25-basis-point
rate
cuts
in
2024.
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
2
The
yield
of
the
benchmark
10-year
U.S.
Treasury
note
briefly
reached
5.00%
in
October
for
the
first
time
since
late
2007
before
falling
back
to
3.88%
by
period-end,
the
same
level
where
it
started
the
year,
amid
cooler-than-expected
inflation
readings
and
less-hawkish
Fed
rhetoric.
Fixed
income
benchmarks
were
lifted
late
in
the
year
by
falling
yields.
Investment-grade
and
high
yield
corporate
bonds
produced
solid
returns,
supported
by
the
higher
coupons
that
have
become
available
over
the
past
year,
as
well
as
increasing
hopes
that
the
economy
might
be
able
to
avoid
a
recession.
Global
economies
and
markets
showed
surprising
resilience
in
2023,
but
considerable
uncertainty
remains
as
we
look
ahead.
Geopolitical
events,
the
path
of
monetary
policy,
and
the
impact
of
the
Fed’s
rate
hikes
on
the
economy
all
raise
the
potential
for
additional
volatility.
We
believe
this
environment
makes
skilled
active
management
a
critical
tool
for
identifying
risks
and
opportunities,
and
our
investment
teams
will
continue
to
use
fundamental
research
to
help
identify
securities
that
can
add
value
to
your
portfolio
over
the
long
term.
Thank
you
for
your
continued
confidence
in
T.
Rowe
Price.
Sincerely, 
Robert
Sharps
CEO
and
President
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
Management’s
Discussion
of
Fund
Performance
3
INVESTMENT
OBJECTIVE 
The
fund
seeks
to
provide
long-term
capital
growth
by
investing
primarily
in
U.S.
common
stocks.
FUND
COMMENTARY
How
did
the
fund
perform
in
the
past 12
months?
The
U.S.
Equity
Research
Fund
returned
29.80%
for
the
12
months
ended
December
31,
2023.
The
fund
outperformed
its
benchmark,
the
S&P
500
Index,
and
its
Lipper
peer
group.
(Returns
for
the
Advisor,
R,
I,
and
Z
Class
shares
varied
slightly,
reflecting
their
different
fee
structures.
Past
performance
cannot
guarantee
future
results
.
)
What
factors
influenced
the
fund’s
performance?
The
fund’s
objective
is
to
outperform
the
S&P
500
Index
by
investing
in
our
research
analysts’
highest-
conviction
stocks
while
keeping
sector
and
industry
allocations
close
to
their
weightings
in
the
index.
Stock
selection
in
eight
of
11
sectors
contributed
to
relative
performance
during
the
period.
Overall,
the
information
technology,
industrials
and
business
services,
and
health
care
sectors
contributed
to
relative
returns,
while
the
consumer
discretionary
and
energy
sectors
detracted
on
a
relative
basis.
The
information
technology
sector
was
the
largest
contributor
to
the
fund’s
relative
performance
versus
the
S&P
500
Index
due
to
stock
selection.
An
overweight
position
in
NVIDIA,
a
semiconductor
company
that
designs
graphics
processing
units
(GPUs)
used
in
gaming
and
professional
graphics,
was
beneficial
as
investors
rewarded
the
company’s
product
suite
for
its
potential
to
facilitate
growth
in
the
popular
artificial
intelligence
(AI)
space.
We
think
NVIDIA
is
a
high-quality
company
solidifying
a
leadership
position
PERFORMANCE
COMPARISON
Total
Return
Periods
Ended
12/31/23
6
Months
12
Months
U.S.
Equity
Research
Fund
.
9.19‌%
29.80‌%
U.S.
Equity
Research
Fund–
.
Advisor  Class
8.96‌
29.37‌
U.S.
Equity
Research
Fund–
.
R  Class
8.79‌
29.00‌
U.S.
Equity
Research
Fund–
.
I  Class
9.21‌
29.91‌
U.S.
Equity
Research
Fund–
.
Z  Class
9.41‌
30.37‌
S&P
500
Index
8.04‌
26.29‌
Lipper
Large-Cap
Core
Funds
Index
8.67‌
24.65‌
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
4
in
its
industry
as
the
role
of
GPUs
continues
to
gain
importance
amid
several
powerful
vectors
for
growth:
AI,
supercomputing,
gaming,
and
autonomous
driving.
(Please
refer
to
the
fund’s
portfolio
of
investments
for
a
complete
list
of
holdings
and
the
amount
each
represents
in
the
portfolio.)
An
overweight
position
in
global
customer
relationship
management
platform
Salesforce
helped
relative
returns.
Shares
advanced
after
the
company
announced
significant
cost-cutting
actions,
reported
a
string
of
good
quarterly
earnings
releases,
and
increased
its
full-year
revenue
and
operating
margin
guidance.
An
overweight
position
in
industrial
conglomerate
GE
aided
relative
results
in
the
industrials
and
business
services
sector.
Shares
traded
higher
after
the
company
spun
off
its
health
care
business
into
a
separate
company
at
the
beginning
of
the
year.
The
stock
also
advanced
following
strong
back-to-back
quarterly
results
and
an
increase
to
the
low
end
of
the
company’s
full-year
profit
outlook.
We
are
optimistic
about
the
company’s
efforts
to
strengthen
its
balance
sheet
and
deploy
capital
to
enhance
shareholder
value.
We
also
think
the
company
will
benefit
from
a
strong
multiyear
recovery
in
its
aviation
business.
A
nonindex
position
in
national
less-than-truckload
(LTL)
carrier
Saia
added
value.
(Less-than-truckload
(LTL)
is
a
shipping
service
for
relatively
small
loads
that
don't
require
a
full
truckload
trailer.)
Shares
advanced
after
the
company
reported
better-than-expected
first-
and
second-quarter
results
amid
a
choppy
freight
environment
as
the
company
benefited
from
inflationary
pricing
power.
Shares
also
appreciated
following
signs
that
a
fellow
LTL
carrier
could
be
headed
for
bankruptcy,
which
could
free
up
market
share
for
Saia.
We
think
that
Saia
operates
in
an
attractive
industry
that
is
structured
to
capture
inflation-plus
pricing
power
due
to
rational
participants,
flat
supply
amid
modest
volume
growth,
and
secular
cost
inflation.
Within
the
health
care
sector,
an
overweight
position
in
pharmaceutical
company
Eli
Lilly
contributed
to
relative
results.
During
the
period,
positive
results
from
a
number
of
drugs
in
the
company’s
pipeline
drove
shares
higher.
Shares
were
also
boosted
after
management
increased
the
company’s
2023
revenue
guidance
and
earnings
outlook.
We
believe
the
company
has
several
late-stage
assets
with
high
probabilities
of
success
that
will
benefit
its
visibility
and
revenue
over
the
next
12
to
18
months.
Conversely,
stock
selection
in
the
consumer
discretionary
sector
detracted
from
relative
returns,
led
by
our
average
underweight
position
in
electric
carmaker
Tesla.
Shares
rose
early
in
the
year
after
the
company
announced
better-than-
expected
fourth-quarter
revenue
and
earnings
and
an
optimistic
outlook
for
2023
production
and
sales.
Shares
also
appreciated
on
investor
enthusiasm
toward
the
potential
of
AI
to
enhance
the
company’s
full
self-driving
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
5
capabilities.
We
are
underweight
as
we
believe
there
may
be
an
oversupply
of
Tesla
vehicles
relative
to
the
demand
over
the
next
12
months
as
affordability
has
greatly
deteriorated
in
the
U.S.
due
to
trade-in
values
and
higher
interest
rates
while
prices
have
increased.
An
overweight
position
in
oil
field
services
company
Halliburton
weighed
on
relative
results
in
energy.
Although
the
company
reported
better-than-
expected
fourth-quarter
earnings
and
revenue
and
increased
its
quarterly
dividend,
shares
declined
along
with
the
overall
market
early
in
the
year
and
underperformed
the
broader
energy
sector.
Later
in
the
year,
the
stock
was
pressured
in
part
by
a
drop
in
crude
oil
prices
as
well
as
lower-than-expected
third-quarter
revenue,
driven
by
weakness
in
North
America.
We
like
the
company
for
its
leading
position
in
pressure
pumping.
How
is
the
fund
positioned?
Similar
to
the
S&P
500
Index,
information
technology,
financials,
health
care,
and
consumer
discretionary
were
the
fund’s
largest
sector
positions
in
absolute
terms
and
represented
more
than
60%
of
the
fund’s
net
assets
at
the
end
of
the
period.
Wireless
carrier
T-Mobile
US,
pharmaceutical
company
Eli
Lilly,
and
enterprise
software-
as-a-service
provider
Salesforce
represented
the
fund’s
largest
overweight
stocks
versus
the
benchmark.
In
our
view,
T-Mobile
has
the
potential
to
become
the
best
wireless
network
in
the
U.S.
as
it
realizes
synergies
from
its
2020
Sprint
merger,
increases
its
exposure
to
suburban
and
rural
areas
as
well
as
the
enterprise
wireless
market
segment,
and
further
expands
its
5G
network
leadership.
We
believe
Eli
Lilly
has
a
number
of
underappreciated
late-stage
development
programs
with
high
probabilities
of
success
SECTOR
DIVERSIFICATION
Percent
of
Net
Assets
6/30/23
12/31/23
Information
Technology  
28.0‌%
28.8‌%
Financials  
13.2‌
13.6‌
Health
Care  
14.1‌
13.1‌
Consumer
Discretionary  
10.7‌
10.8‌
Communication
Services  
8.3‌
8.6‌
Industrials
and
Business
Services  
7.6‌
8.0‌
Consumer
Staples  
6.7‌
6.0‌
Energy  
3.9‌
3.9‌
Utilities  
2.6‌
2.3‌
Materials  
2.2‌
2.2‌
Real
Estate  
2.1‌
2.1‌
Other
and
Reserves  
0.6‌
0.6‌
Total
100.0‌%
100.0‌%
Historical
weightings
reflect
current
industry/sector
classifications.
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
6
that
will
gain
increased
visibility
and
revenue
upgrades
over
the
next
12
to
18
months.
We
also
think
Eli
Lilly’s
higher-risk
Alzheimer’s
program
remains
an
attractive
option
at
current
valuations.
We
believe
that
Salesforce
offers
a
highly
recurring
subscription
business
model
that
is
well
positioned
to
benefit
from
secular
tailwinds
as
enterprises
migrate
to
the
cloud.
We
see
the
potential
for
strong
free
cash
flow
growth
over
the
next
several
years
given
its
advantaged
positioning
and
long
runway
for
margin
expansion.
Notable
additions
to
the
portfolio
during
the
period
included
leading
global
transportation-as-a-service
provider
Uber
Technologies,
online
document
signing
services
provider
DocuSign,
and
oil
field
services
company
Schlumberger.
What
is
portfolio
management’s
outlook?
There
is
a
broad
range
of
potential
outcomes
for
the
market
moving
forward,
and
it’s
not
entirely
clear
what
the
path
will
be.
However,
we
believe
the
fund
can
help
cushion
against
this
uncertainty
as
it
has
done
in
the
past
in
a
variety
of
market
environments.
(Past
performance
cannot
guarantee
future
results.)
Some
of
our
analysts
cover
sectors
that
are
more
growth
oriented,
while
others
focus
on
those
that
are
more
value
oriented.
The
diversifying
effect
of
our
contributing
analysts,
along
with
applying
rules-based
construction
principles,
leads
the
portfolio
to
be
broadly
sector-,
industry-,
and
style-neutral.
By
tightly
controlling
risk
relative
to
the
benchmark
and
isolating
stock
selection
skill,
we
believe
it’s
possible
to
shield
against
large,
unpredictable
swings
in
the
market.
The
views
expressed
reflect
the
opinions
of
T.
Rowe
Price
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic,
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
7
Risks
of
Stock
Investing
As
with
all
stock
mutual
funds,
the
fund’s
share
price
can
fall
because
of
weakness
in
the
stock
market,
a
particular
industry,
or
specific
holdings.
Stock
markets
can
decline
for
many
reasons,
including
adverse
political
or
economic
developments,
changes
in
investor
psychology,
or
heavy
institutional
selling.
The
prospects
for
an
industry
or
company
may
deteriorate
because
of
a
variety
of
factors,
including
disappointing
earnings
or
changes
in
the
competitive
environment.
In
addition,
the
investment
manager’s
assessment
of
companies
held
in
a
fund
may
prove
incorrect,
resulting
in
losses
or
poor
performance
even
in
rising
markets.
BENCHMARK
INFORMATION
Note:
Portions
of
the
mutual
fund
information
contained
in
this
report
was
supplied
by
Lipper,
a
Refinitiv
Company,
subject
to
the
following:
Copyright
2024
©
Refinitiv.
All
rights
reserved.
Any
copying,
republication
or
redistribution
of
Lipper
content
is
expressly
prohibited
without
the
prior
written
consent
of
Lipper.
Lipper
shall
not
be
liable
for
any
errors
or
delays
in
the
content,
or
for
any
actions
taken
in
reliance
thereon.
Note:
The
S&P
500
Index
is
a
product
of
S&P
Dow
Jones
Indices
LLC,
a
division
of
S&P
Global,
or
its
affiliates
(“SPDJI”)
and
has
been
licensed
for
use
by
T.
Rowe
Price.
Standard
&  Poor’s
®
and
S&P
®
 are
registered
trademarks of
Standard
&
Poor’s
Financial
Services
LLC,
a
division
of
S&P
Global (“S&P”);
Dow
Jones
®
is
a
registered
trademark
of
Dow
Jones
Trademark
Holdings
LLC
(“Dow
Jones”);
T.
Rowe
Price
is
not
sponsored,
endorsed,
sold
or
promoted
by
SPDJI,
Dow
Jones,
S&P,
or
their
respective
affiliates,
and
none
of
such
parties
make
any
representation
regarding
the
advisability
of
investing
in
such
product(s)
nor
do
they
have
any
liability
for
any
errors,
omissions,
or
interruptions
of
the
S&P
500
Index.
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
8
PORTFOLIO
HIGHLIGHTS
TWENTY-FIVE
LARGEST
HOLDINGS
Percent
of
Net
Assets
12/31/23
Microsoft
7.2‌%
Apple
6.8‌ 
Alphabet
3.9‌ 
Amazon.com
3.5‌ 
NVIDIA
3.4‌ 
Meta
Platforms
2.0‌
Tesla
1.6‌
Eli
Lilly
1.6‌
Broadcom
1.4‌
JPMorgan
Chase
1.3‌
UnitedHealth
Group
1.2‌
Berkshire
Hathaway
1.2‌
Visa
1.2‌
Exxon
Mobil
1.1‌
Salesforce
1.0‌
Mastercard
0.9‌
Home
Depot
0.9‌
Procter
&
Gamble
0.9‌
T-Mobile
U.S.
0.9‌
Accenture
0.9‌
Johnson
&
Johnson
0.8‌
Adobe
0.8‌
Linde
0.8‌
Costco
Wholesale
0.7‌
Boeing
0.7‌
Total
46.7‌%
Note:
The
information
shown
does
not
reflect
any
exchange-traded
funds
(ETFs),
cash
reserves,
or
collateral
for
securities
lending
that
may
be
held
in
the
portfolio.
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
9
GROWTH
OF
$10,000 
This
chart
shows
the
value
of
a
hypothetical
$10,000
investment
in
the
fund
over
the
past
10
fiscal
year
periods
or
since
inception
(for funds
lacking
10-year
records).
The
result
is
compared
with
benchmarks,
which
include
a
broad-based
market
index
and
may
also
include
a
peer
group
average
or
index.
Market
indexes
do
not
include
expenses,
which
are
deducted
from
fund returns
as
well
as
mutual fund
averages
and
indexes.
U.S.
EQUITY
RESEARCH
FUND 
Note:
Performance
for
the Advisor,
R,
I,
and
Z Class
shares
will
vary
due
to
their
differing
fee
structures.
See
the
Average
Annual
Compound
Total
Return
table. 
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
10
AVERAGE
ANNUAL
COMPOUND
TOTAL
RETURN
Periods
Ended
12/31/23
1
Year
5
Years
10
Years
Since
Inception
Inception
Date
U.S.
Equity
Research
Fund
.
29.80‌%
16.44‌%
12.39‌%
–‌
U.S.
Equity
Research
Fund–
.
Advisor  Class
29.37‌
16.02‌
12.03‌
–‌
U.S.
Equity
Research
Fund–
.
R  Class
29.00‌
15.72‌
11.71‌
–‌
U.S.
Equity
Research
Fund–
.
I  Class
29.91‌
16.54‌
–‌
14.28‌%
11/29/16
U.S.
Equity
Research
Fund–
.
Z  Class
30.37‌
–‌
–‌
3.79‌
11/23/21
The
fund’s
performance
information
represents
only
past
performance
and
is
not
necessarily
an
indication
of
future
results.
Current
performance
may
be
lower
or
higher
than
the
performance
data
cited.
Share
price,
principal
value,
and
return
will
vary,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
For
the
most
recent
month-end
performance,
please
visit
our
website
(troweprice.com)
or
contact
a
T.
Rowe
Price
representative
at
1
-
800
-
225
-
5132
or,
for
0.02
Advisor,
0.03
R,
0.04
I
,
and
0.05
Z
Class
shares,
1-800-638-8790.
This
table
shows
how
the
fund
would
have
performed
each
year
if
its
actual
(or
cumulative)
returns
had
been
earned
at
a
constant
rate.
Average
annual
total
return
figures
include
changes
in
principal
value,
reinvested
dividends,
and
capital
gain
distributions.
Returns
do
not
reflect
taxes
that
the
shareholder
may
pay
on
fund
distributions
or
the
redemption
of
fund
shares.
When
assessing
performance,
investors
should
consider
both
short-
and
long-term
returns.
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
11
EXPENSE
RATIO
FUND
EXPENSE
EXAMPLE
As
a
mutual
fund
shareholder,
you
may
incur
two
types
of
costs:
(1)
transaction
costs,
such
as
redemption
fees
or
sales
loads,
and
(2)
ongoing
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
fund
expenses.
The
following
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
most
recent
six-month
period
and
held
for
the
entire
period.
Please
note
that
the
fund
has
five
share
classes:
The
original
share
class
(Investor
Class)
charges
no
distribution
and
service
(12b-1)
fee,
Advisor
Class
shares
are
offered
only
through
unaffiliated
brokers
and
other
financial
intermediaries
and
charge
a
0.25%
12b-1
fee,
R
Class
shares
are
available
to
retirement
plans
serviced
by
intermediaries
and
charge
a
0.50%
12b-1
fee,
I
Class
shares
are
available
to
institutionally
oriented
clients
and
impose
no
12b-1
or
administrative
fee
payment,
and
Z
Class
shares
are
offered
only
to
funds
advised
by
T.
Rowe
Price
and
other
advisory
clients
of
T.
Rowe
Price
or
its
affiliates
that
are
subject
to
a
contractual
fee
for
investment
management
services
and
impose
no
12b-1
fee
or
administrative
fee
payment.
Each
share
class
is
presented
separately
in
the
table.
Actual
Expenses
The
first
line
of
the
following
table
(Actual)
provides
information
about
actual
account
values
and
expenses
based
on
the
fund’s
actual
returns.
You
may
use
the
information
on
this
line,
together
with
your
account
balance,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
on
the
first
line
under
the
heading “Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period. 
U.S.
Equity
Research
Fund
0.45‌%
U.S.
Equity
Research
Fund–Advisor
Class
0.82‌ 
U.S.
Equity
Research
Fund–R
Class
1.12‌ 
U.S.
Equity
Research
Fund–I
Class
0.35‌ 
U.S.
Equity
Research
Fund–Z
Class
0.34‌ 
The
expense
ratio
shown
is
as
of
the
fund’s
most
recent
prospectus.
This
number
may
vary
from
the
expense
ratio
shown
elsewhere
in
this
report
because
it
is
based
on
a
different
time
period
and,
if
applicable,
includes
acquired
fund
fees
and
expenses
but
does
not
include
fee
or
expense
waivers.
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
12
Hypothetical
Example
for
Comparison
Purposes
The
information
on
the
second
line
of
the
table
(Hypothetical)
is
based
on
hypothetical
account
values
and
expenses
derived
from
the
fund’s
actual
expense
ratio
and
an
assumed
5%
per
year
rate
of
return
before
expenses
(not
the
fund’s
actual
return).
You
may
compare
the
ongoing
costs
of
investing
in
the
fund
with
other
funds
by
contrasting
this
5%
hypothetical
example
and
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
Note:
T.
Rowe
Price
charges
an
annual
account
service
fee
of
$20,
generally
for
accounts
with
less
than
$10,000.
The
fee
is
waived
for
any
investor
whose
T.
Rowe
Price
mutual
fund
accounts
total
$50,000
or
more;
accounts
electing
to
receive
electronic
delivery
of
account
statements,
transaction
confirmations,
prospectuses,
and
shareholder
reports;
or
accounts
of
an
investor
who
is
a
T.
Rowe
Price
Personal
Services
or
Enhanced
Personal
Services
client
(enrollment
in
these
programs
generally
requires
T.
Rowe
Price
assets
of
at
least
$250,000).
This
fee
is
not
included
in
the
accompanying
table.
If
you
are
subject
to
the
fee,
keep
it
in
mind
when
you
are
estimating
the
ongoing
expenses
of
investing
in
the
fund
and
when
comparing
the
expenses
of
this
fund
with
other
funds.
You
should
also
be
aware
that
the
expenses
shown
in
the
table
highlight
only
your
ongoing
costs
and
do
not
reflect
any
transaction
costs,
such
as
redemption
fees
or
sales
loads.
Therefore,
the
second
line
of
the
table
is
useful
in
comparing
ongoing
costs
only
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
To
the
extent
a
fund
charges
transaction
costs,
however,
the
total
cost
of
owning
that
fund
is
higher.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
U.S.
Equity
Research
Fund
13