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Prologis (PLD) Gains As Market Dips: What You Should Know

Zacks Equity Research

In the latest trading session, Prologis (PLD) closed at $87.50, marking a +0.22% move from the previous day. This move outpaced the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.05%.

Heading into today, shares of the industrial real estate developer had lost 4.09% over the past month, lagging the Finance sector's gain of 2.52% and the S&P 500's gain of 2.48% in that time.

Investors will be hoping for strength from PLD as it approaches its next earnings release, which is expected to be January 22, 2020. The company is expected to report EPS of $0.84, up 5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $726.73 million, up 7% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.31 per share and revenue of $2.84 billion. These totals would mark changes of +9.24% and +18.61%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for PLD. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. PLD currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note PLD's current valuation metrics, including its Forward P/E ratio of 26.36. This valuation marks a premium compared to its industry's average Forward P/E of 15.4.

It is also worth noting that PLD currently has a PEG ratio of 4.72. 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 was holding an average PEG ratio of 3.55 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 35% 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.

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