Realty Income Corp. (O) Gains But Lags Market: What You Should Know
Realty Income Corp. (O) closed at $59.22 in the latest trading session, marking a +1.75% move from the prior day. This move lagged the S&P 500's daily gain of 2.59%. At the same time, the Dow added 2.66%, and the tech-heavy Nasdaq gained 0.07%.
Prior to today's trading, shares of the real estate investment trust had lost 14.02% over the past month. This has lagged the Finance sector's loss of 9.14% and the S&P 500's loss of 9.22% 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. In that report, analysts expect Realty Income Corp. to post earnings of $0.95 per share. This would mark year-over-year growth of 4.4%. Our most recent consensus estimate is calling for quarterly revenue of $829.93 million, up 68.73% from the year-ago period.
O's full-year Zacks Consensus Estimates are calling for earnings of $3.92 per share and revenue of $3.31 billion. These results would represent year-over-year changes of +9.19% and +58.61%, respectively.
Investors might also notice recent changes to analyst estimates for Realty Income Corp.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.
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 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Realty Income Corp. is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Realty Income Corp. currently has a Forward P/E ratio of 14.86. This valuation marks a premium compared to its industry's average Forward P/E of 11.8.
Meanwhile, O's PEG ratio is currently 3.76. 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. The REIT and Equity Trust - Retail was holding an average PEG ratio of 1.74 at yesterday's closing price.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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