Simon Property (SPG) Gains As Market Dips: What You Should Know
In the latest trading session, Simon Property (SPG) closed at $132.59, marking a +0.97% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow gained 0.72%, and the Nasdaq, a tech-heavy index, added 0.39%.
Prior to today's trading, shares of the shopping mall real estate investment trust had lost 1.14% over the past month. This has was narrower than the Finance sector's loss of 1.97% and lagged the S&P 500's gain of 0.17% in that time.
Investors will be hoping for strength from Simon Property as it approaches its next earnings release. On that day, Simon Property is projected to report earnings of $2.74 per share, which would represent year-over-year growth of 10.48%. Meanwhile, our latest consensus estimate is calling for revenue of $1.33 billion, up 7.27% from the prior-year quarter.
SPG's full-year Zacks Consensus Estimates are calling for earnings of $11.73 per share and revenue of $5.48 billion. These results would represent year-over-year changes of -1.76% and +7.19%, respectively.
It is also important to note the recent changes to analyst estimates for Simon Property. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Simon Property currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Simon Property is currently trading at a Forward P/E ratio of 11.19. This valuation marks a discount compared to its industry's average Forward P/E of 16.59.
Meanwhile, SPG's PEG ratio is currently 2.53. 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 was holding an average PEG ratio of 2.28 at yesterday's closing price.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 72, which puts 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Simon Property Group, Inc. (SPG) : Free Stock Analysis Report
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