Extra Space Storage (EXR) Gains But Lags Market: What You Should Know

In the latest trading session, Extra Space Storage (EXR) closed at $197.97, marking a +0.7% move from the previous day. This change lagged the S&P 500's 2.57% gain on the day. At the same time, the Dow added 2%, and the tech-heavy Nasdaq gained 0.3%.

Prior to today's trading, shares of the self-storage facility real estate investment trust had lost 1.29% over the past month. This has was narrower than the Finance sector's loss of 9.54% and the S&P 500's loss of 7.68% in that time.

Investors will be hoping for strength from Extra Space Storage as it approaches its next earnings release. On that day, Extra Space Storage is projected to report earnings of $1.80 per share, which would represent year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $425.85 million, up 18.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.73 per share and revenue of $1.76 billion, which would represent changes of +11.87% and +11.63%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Extra Space Storage. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.68% higher. Extra Space Storage is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Extra Space Storage is holding a Forward P/E ratio of 25.43. For comparison, its industry has an average Forward P/E of 14.95, which means Extra Space Storage is trading at a premium to the group.

Also, we should mention that EXR has a PEG ratio of 3.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 2.73 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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