Realty Income Corp. (O) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Realty Income Corp. (O) closed at $70.35, marking a +0.99% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.34%.
Prior to today's trading, shares of the real estate investment trust had gained 2.93% over the past month. This has outpaced the Finance sector's gain of 1.61% and the S&P 500's loss of 0.12% in that time.
Investors will be hoping for strength from O as it approaches its next earnings release, which is expected to be November 1, 2021. The company is expected to report EPS of $0.91, up 12.35% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $479.07 million, up 18.41% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.57 per share and revenue of $1.95 billion, which would represent changes of +5.31% and +18.11%, respectively, from the prior year.
Any recent changes to analyst estimates for O should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 remained stagnant. O is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, O is holding a Forward P/E ratio of 19.5. This represents a premium compared to its industry's average Forward P/E of 16.64.
It is also worth noting that O currently has a PEG ratio of 4.47. 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. O's industry had an average PEG ratio of 2.65 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 39, which puts it in the top 16% 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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