U.S. Markets closed

Realty Income Corp. (O) Gains As Market Dips: What You Should Know

Realty Income Corp. (O) closed the most recent trading day at $60.60, moving +0.18% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.74%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 0.01%.

Heading into today, shares of the real estate investment trust had gained 1.68% over the past month, lagging the Finance sector's gain of 3.51% and the S&P 500's gain of 4.58% in that time.

Realty Income Corp. will be looking to display strength as it nears its next earnings release, which is expected to be November 2, 2022. The company is expected to report EPS of $0.97, up 6.59% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $831.16 million, up 68.98% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.91 per share and revenue of $3.31 billion. These totals would mark changes of +8.91% and +58.83%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Realty Income Corp.Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.37% lower. Realty Income Corp. is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Realty Income Corp. has a Forward P/E ratio of 15.49 right now. For comparison, its industry has an average Forward P/E of 12.93, which means Realty Income Corp. is trading at a premium to the group.

It is also worth noting that O currently has a PEG ratio of 5.41. 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. O's industry had an average PEG ratio of 1.93 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 89, putting it in the top 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Realty Income Corporation (O) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research