Realty Income Corp. (O) Advances But Underperforms Market: Key Facts
Realty Income Corp. (O) closed the most recent trading day at $52.24, moving +0.15% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.03% for the day. On the other hand, the Dow registered a gain of 0.34%, and the technology-centric Nasdaq increased by 1.51%.
The real estate investment trust's shares have seen a decrease of 2.25% over the last month, not keeping up with the Finance sector's gain of 4.69% and the S&P 500's gain of 3.21%.
The investment community will be paying close attention to the earnings performance of Realty Income Corp. in its upcoming release. The company is expected to report EPS of $1.03, up 5.1% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.17 billion, showing a 23.4% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.19 per share and a revenue of $4.79 billion, demonstrating changes of +4.75% and +17.36%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Realty Income Corp. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.56% lower. Right now, Realty Income Corp. possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Realty Income Corp. is presently being traded at a Forward P/E ratio of 12.46. This denotes a discount relative to the industry's average Forward P/E of 13.06.
It is also worth noting that O currently has a PEG ratio of 5.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The REIT and Equity Trust - Retail industry currently had an average PEG ratio of 3.07 as of yesterday's close.
The REIT and Equity Trust - Retail industry is part of the Finance sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 36% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Realty Income Corporation (O) : Free Stock Analysis Report
