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Realty Income Corp. (O) Dips More Than Broader Markets: What You Should Know

·3 min read

Realty Income Corp. (O) closed at $68.60 in the latest trading session, marking a -0.38% move from the prior day. This change lagged the S&P 500's daily loss of 0.09%.

Heading into today, shares of the real estate investment trust had gained 7.39% over the past month, outpacing the Finance sector's gain of 3.32% and the S&P 500's gain of 5.45% in that time.

Investors will be hoping for strength from O as it approaches its next earnings release, which is expected to be May 3, 2021. On that day, O is projected to report earnings of $0.85 per share, which would represent a year-over-year decline of 3.41%. Our most recent consensus estimate is calling for quarterly revenue of $430.41 million, up 3.88% from the year-ago period.

O's full-year Zacks Consensus Estimates are calling for earnings of $3.48 per share and revenue of $1.8 billion. These results would represent year-over-year changes of +2.65% and +8.73%, respectively.

It is also important to note the recent changes to analyst estimates for O. These revisions help to show the ever-changing nature of near-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.

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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. O is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that O has a Forward P/E ratio of 19.79 right now. Its industry sports an average Forward P/E of 17.89, so we one might conclude that O is trading at a premium comparatively.

Investors should also note that O has a PEG ratio of 5.28 right now. 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. O's industry had an average PEG ratio of 3.71 as of yesterday's close.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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