Realty Income Corp. (O) closed the most recent trading day at $49.66, moving -1.19% from the previous trading session. This move lagged the S&P 500's daily gain of 0.02%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.22%.
Coming into today, shares of the real estate investment trust had lost 11% in the past month. In that same time, the Finance sector lost 1.61%, while the S&P 500 lost 2.86%.
Realty Income Corp. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1, up 2.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.03 billion, up 22.48% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.01 per share and revenue of $4.04 billion. These totals would mark changes of +2.3% and +20.69%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Realty Income Corp.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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.16% higher. Realty Income Corp. is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Realty Income Corp. is currently trading at a Forward P/E ratio of 12.53. For comparison, its industry has an average Forward P/E of 11.62, which means Realty Income Corp. is trading at a premium to the group.
Meanwhile, O's PEG ratio is currently 2.51. 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 3.08 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 89, which puts it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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