In the latest trading session, Realty Income Corp. (O) closed at $54.79, marking a -0.87% move from the previous day. This change was narrower than the S&P 500's 0.92% loss on the day. Elsewhere, the Dow lost 1.17%, while the tech-heavy Nasdaq lost 0.28%.
Prior to today's trading, shares of the real estate investment trust had gained 18.94% over the past month. This has outpaced the Finance sector's gain of 10.05% and the S&P 500's gain of 15.69% in that time.
Investors will be hoping for strength from O as it approaches its next earnings release, which is expected to be May 4, 2020. In that report, analysts expect O to post earnings of $0.85 per share. This would mark year-over-year growth of 3.66%. Our most recent consensus estimate is calling for quarterly revenue of $412.10 million, up 16.29% from the year-ago period.
O's full-year Zacks Consensus Estimates are calling for earnings of $3.38 per share and revenue of $1.65 billion. These results would represent year-over-year changes of +1.81% and +10.94%, respectively.
Any recent changes to analyst estimates for O should also be noted by investors. 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 3.01% lower. O is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note O's current valuation metrics, including its Forward P/E ratio of 16.35. This valuation marks a premium compared to its industry's average Forward P/E of 9.63.
We can also see that O currently has a PEG ratio of 5.06. 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 industry currently had an average PEG ratio of 3.92 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 171, putting it in the bottom 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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