In the latest trading session, Realty Income Corp. (O) closed at $61.10, marking a +0.02% move from the previous day. The stock lagged the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.52%.
Heading into today, shares of the real estate investment trust had gained 1.55% over the past month, outpacing the Finance sector's gain of 0.22% and lagging the S&P 500's gain of 2.08% in that time.
O will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.82, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $399.84 million, up 9.41% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.41 per share and revenue of $1.64 billion. These totals would mark changes of +2.71% and +10.06%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for O. Recent revisions tend to reflect the latest near-term business trends. 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. 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.
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. Within the past 30 days, our consensus EPS projection has moved 1.48% lower. O is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, O is currently trading at a Forward P/E ratio of 17.92. This represents a premium compared to its industry's average Forward P/E of 10.78.
It is also worth noting that O currently has a PEG ratio of 5.64. 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. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 5.64 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 210, putting it in the bottom 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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