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

Realty Income Corp. (O) closed the most recent trading day at $58.20, moving +0.43% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.51%. Elsewhere, the Dow lost 1.71%, while the tech-heavy Nasdaq lost 0.02%.

Prior to today's trading, shares of the real estate investment trust had lost 15.34% over the past month. This has lagged the Finance sector's loss of 9% and the S&P 500's loss of 9.52% in that time.

Realty Income Corp. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Realty Income Corp. to post earnings of $0.98 per share. This would mark year-over-year growth of 7.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

It is also important to note the 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Realty Income Corp. currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Realty Income Corp. has a Forward P/E ratio of 14.79 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.59.

Investors should also note that O has a PEG ratio of 3.74 right now. 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 1.71 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 75, putting it in the top 30% 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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