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Realty Income Corp. (O) Gains But Lags Market: What You Should Know

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Realty Income Corp. (O) closed the most recent trading day at $70.08, moving +0.88% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.76%. Elsewhere, the Dow gained 2.43%, while the tech-heavy Nasdaq added 0.13%.

Heading into today, shares of the real estate investment trust had gained 7.09% over the past month, outpacing the Finance sector's gain of 1.82% and the S&P 500's gain of 4.44% in that time.

Realty Income Corp. will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2022. In that report, analysts expect Realty Income Corp. to post earnings of $0.95 per share. This would mark year-over-year growth of 7.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $808.49 million, up 74.14% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.91 per share and revenue of $3.27 billion. These totals would mark changes of +8.91% and +56.83%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Realty Income Corp.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.

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 0.38% lower within the past month. Realty Income Corp. is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Realty Income Corp. currently has a Forward P/E ratio of 17.77. For comparison, its industry has an average Forward P/E of 13.1, which means Realty Income Corp. is trading at a premium to the group.

Also, we should mention that O has a PEG ratio of 5.03. 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. The REIT and Equity Trust - Retail industry currently had an average PEG ratio of 1.96 as of yesterday's close.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% 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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