In the latest trading session, Realty Income Corp. (O) closed at $61.81, marking a -1.1% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.72%. Elsewhere, the Dow lost 1.62%, while the tech-heavy Nasdaq added 0.01%.
Heading into today, shares of the real estate investment trust had lost 12% over the past month, lagging the Finance sector's loss of 7.22% and the S&P 500's loss of 9.09% in that time.
Realty Income Corp. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Realty Income Corp. to post earnings of $0.98 per share. This would mark year-over-year growth of 7.69%. Our most recent consensus estimate is calling for quarterly revenue of $829.93 million, up 68.73% from the year-ago period.
O's full-year Zacks Consensus Estimates are calling for earnings of $3.92 per share and revenue of $3.31 billion. These results would represent year-over-year changes of +9.19% and +58.61%, respectively.
It is also important to note the recent changes to analyst estimates for Realty Income Corp.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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Realty Income Corp. is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Realty Income Corp. is holding a Forward P/E ratio of 15.95. This valuation marks a premium compared to its industry's average Forward P/E of 12.29.
It is also worth noting that O currently has a PEG ratio of 4.03. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust - Retail industry currently had an average PEG ratio of 1.8 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 79, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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