In the latest trading session, Prologis (PLD) closed at $127.29, marking a -0.83% move from the previous day. This change lagged the S&P 500's 0.67% loss on the day. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Heading into today, shares of the industrial real estate developer had lost 3.18% over the past month, lagging the Finance sector's gain of 3.19% and the S&P 500's gain of 3.65% in that time.
Prologis will be looking to display strength as it nears its next earnings release. On that day, Prologis is projected to report earnings of $1.76 per share, which would represent year-over-year growth of 69.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.13 billion, up 8.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.17 per share and revenue of $4.46 billion, which would represent changes of +24.58% and +7.58%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Prologis. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Prologis is currently a Zacks Rank #2 (Buy).
Investors should also note Prologis's current valuation metrics, including its Forward P/E ratio of 24.81. For comparison, its industry has an average Forward P/E of 13.44, which means Prologis is trading at a premium to the group.
Also, we should mention that PLD has a PEG ratio of 2.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 2.27 as of yesterday's close.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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