U.S. markets closed
  • S&P 500

    3,911.74
    +116.01 (+3.06%)
     
  • Dow 30

    31,500.68
    +823.32 (+2.68%)
     
  • Nasdaq

    11,607.62
    +375.43 (+3.34%)
     
  • Russell 2000

    1,765.74
    +54.06 (+3.16%)
     
  • Crude Oil

    107.06
    +2.79 (+2.68%)
     
  • Gold

    1,828.10
    -1.70 (-0.09%)
     
  • Silver

    21.13
    +0.09 (+0.42%)
     
  • EUR/USD

    1.0559
    +0.0034 (+0.33%)
     
  • 10-Yr Bond

    3.1250
    +0.0570 (+1.86%)
     
  • GBP/USD

    1.2274
    +0.0013 (+0.11%)
     
  • USD/JPY

    135.1600
    +0.2270 (+0.17%)
     
  • BTC-USD

    21,026.72
    +134.72 (+0.64%)
     
  • CMC Crypto 200

    462.12
    +8.22 (+1.81%)
     
  • FTSE 100

    7,208.81
    +188.36 (+2.68%)
     
  • Nikkei 225

    26,491.97
    +320.72 (+1.23%)
     

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

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Realty Income Corp. (O) closed at $70.57 in the latest trading session, marking a -0.47% move from the prior day. This move lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.36%.

Coming into today, shares of the real estate investment trust had gained 6.11% in the past month. In that same time, the Finance sector gained 4.68%, while the S&P 500 gained 5.64%.

Investors will be hoping for strength from Realty Income Corp. as it approaches its next earnings release. On that day, Realty Income Corp. is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 12.79%. Our most recent consensus estimate is calling for quarterly revenue of $744.67 million, up 68.17% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.95 per share and revenue of $3.13 billion. These totals would mark changes of +10.03% and +49.96%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Realty Income Corp.These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.

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 0.36% higher. Realty Income Corp. is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note Realty Income Corp.'s current valuation metrics, including its Forward P/E ratio of 17.97. Its industry sports an average Forward P/E of 16.15, so we one might conclude that Realty Income Corp. is trading at a premium comparatively.

Investors should also note that O has a PEG ratio of 3.77 right now. 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. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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.

To follow O in the coming trading sessions, be sure to utilize Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Realty Income Corporation (O) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research