U.S. Markets close in 52 mins

Global Net Lease (GNL) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
Does Ensign Group (ENSG) have what it takes to be a top stock pick for momentum investors? Let's find out.

Global Net Lease (GNL) closed the most recent trading day at $20.16, moving -1.27% from the previous trading session. This change lagged the S&P 500's daily gain of 1.32%. Meanwhile, the Dow gained 1.38%, and the Nasdaq, a tech-heavy index, added 1.74%.

Prior to today's trading, shares of the real estate investment trust had gained 12.88% over the past month. This has outpaced the Finance sector's gain of 6.24% and the S&P 500's gain of 4.16% in that time.

Investors will be hoping for strength from GNL as it approaches its next earnings release, which is expected to be February 26, 2019. On that day, GNL is projected to report earnings of $0.54 per share, which would represent year-over-year growth of 5.88%. Our most recent consensus estimate is calling for quarterly revenue of $74.72 million, up 12.19% from the year-ago period.

It is also important to note the recent changes to analyst estimates for GNL. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. GNL is currently a Zacks Rank #3 (Hold).

Investors should also note GNL's current valuation metrics, including its Forward P/E ratio of 9.79. This valuation marks a discount compared to its industry's average Forward P/E of 14.08.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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
 
Global Net Lease, Inc. (GNL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.