Realty Income Corp. (O) Gains As Market Dips: What You Should Know
Realty Income Corp. (O) closed at $77.40 in the latest trading session, marking a +0.35% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.57%. Elsewhere, the Dow lost 1.57%, while the tech-heavy Nasdaq lost 1.89%.
Coming into today, shares of the real estate investment trust had gained 5.89% in the past month. In that same time, the Finance sector gained 0.29%, while the S&P 500 gained 2.35%.
Investors will be hoping for strength from O as it approaches its next earnings release, which is expected to be February 19, 2020. In that report, analysts expect O to post earnings of $0.83 per share. This would mark year-over-year growth of 5.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $387.29 million, up 13.05% from the year-ago period.
Investors might also notice recent changes to analyst estimates for O. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. O is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, O is holding a Forward P/E ratio of 21.97. This represents a premium compared to its industry's average Forward P/E of 13.95.
We can also see that O currently has a PEG ratio of 5.98. 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 was holding an average PEG ratio of 3.88 at yesterday's closing price.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% 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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