Realty Income Corp. (O) Dips More Than Broader Markets: What You Should Know
Realty Income Corp. (O) closed the most recent trading day at $68.46, moving -1.21% from the previous trading session. This move lagged the S&P 500's daily loss of 0.35%.
Prior to today's trading, shares of the real estate investment trust had lost 1.84% over the past month. This has lagged the Finance sector's loss of 1.01% and the S&P 500's gain of 3.36% in that time.
O will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2021. On that day, O is projected to report earnings of $0.87 per share, which would represent year-over-year growth of 1.16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $447.69 million, up 7.97% from the year-ago period.
O's full-year Zacks Consensus Estimates are calling for earnings of $3.50 per share and revenue of $1.87 billion. These results would represent year-over-year changes of +3.24% and +13.21%, respectively.
Investors might also notice recent changes to analyst estimates for O. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 has moved 0.95% higher within the past month. O is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, O currently has a Forward P/E ratio of 19.8. Its industry sports an average Forward P/E of 16.86, so we one might conclude that O is trading at a premium comparatively.
Also, we should mention that O has a PEG ratio of 4.93. 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. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 3.43 based on yesterday's closing prices.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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