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Realty Income Corp. (O) Outpaces Stock Market Gains: What You Should Know

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Realty Income Corp. (O) closed at $71.61 in the latest trading session, marking a +0.36% move from the prior day. This change outpaced the S&P 500's 0.13% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Heading into today, shares of the real estate investment trust had gained 3.12% over the past month, lagging the Finance sector's gain of 3.26% and the S&P 500's gain of 5.55% in that time.

Wall Street will be looking for positivity from Realty Income Corp. as it approaches its next earnings report date. This is expected to be August 3, 2022. The company is expected to report EPS of $0.95, up 7.95% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $808.49 million, up 74.14% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.91 per share and revenue of $3.27 billion. These totals would mark changes of +8.91% and +56.83%, respectively, from last year.

Any recent changes to analyst estimates for Realty Income Corp. should also be noted by investors. 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. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.38% lower. Realty Income Corp. is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Realty Income Corp. is holding a Forward P/E ratio of 18.26. Its industry sports an average Forward P/E of 13.32, so we one might conclude that Realty Income Corp. is trading at a premium comparatively.

Meanwhile, O's PEG ratio is currently 5.16. 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 2.04 as of yesterday's close.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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