Realty Income Corp. (O) closed the most recent trading day at $62.13, moving -1.15% from the previous trading session. This change lagged the S&P 500's 0.53% loss on the day. Meanwhile, the Dow lost 1.04%, and the Nasdaq, a tech-heavy index, added 0.67%.
O will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.80, down 2.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $402.38 million, up 10.11% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.36 per share and revenue of $1.64 billion. These totals would mark changes of +1.2% and +9.96%, respectively, from last year.
Any recent changes to analyst estimates for O should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 0.07% higher. O is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, O currently has a Forward P/E ratio of 18.72. For comparison, its industry has an average Forward P/E of 11.71, which means O is trading at a premium to the group.
It is also worth noting that O currently has a PEG ratio of 5.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 5.74 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 192, putting it in the bottom 25% 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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