Digital Realty Trust (DLR) Gains As Market Dips: What You Should Know
Digital Realty Trust (DLR) closed at $90.05 in the latest trading session, marking a +0.41% move from the prior day. This move outpaced the S&P 500's daily loss of 0.65%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq gained 0.18%.
Prior to today's trading, shares of the real estate investment trust had lost 29.25% over the past month. This has lagged the Finance sector's loss of 10.66% and the S&P 500's loss of 11.07% in that time.
Investors will be hoping for strength from Digital Realty Trust as it approaches its next earnings release, which is expected to be October 26, 2022. In that report, analysts expect Digital Realty Trust to post earnings of $1.70 per share. This would mark year-over-year growth of 3.03%. Meanwhile, our latest consensus estimate is calling for revenue of $1.19 billion, up 5.33% from the prior-year quarter.
DLR's full-year Zacks Consensus Estimates are calling for earnings of $6.82 per share and revenue of $4.7 billion. These results would represent year-over-year changes of +4.44% and +6.07%, respectively.
Investors might also notice recent changes to analyst estimates for Digital Realty Trust. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Digital Realty Trust is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Digital Realty Trust is currently trading at a Forward P/E ratio of 13.14. Its industry sports an average Forward P/E of 11.3, so we one might conclude that Digital Realty Trust is trading at a premium comparatively.
Meanwhile, DLR's PEG ratio is currently 1.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 132, which puts it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Digital Realty Trust, Inc. (DLR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
