Realty Income Corp. (O) ended the recent trading session at $64.43, demonstrating a -1.69% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 1.66% for the day. Meanwhile, the Dow experienced a rise of 1.19%, and the technology-dominated Nasdaq saw an increase of 2.78%.
The real estate investment trust's shares have seen an increase of 6.02% over the last month, surpassing the Finance sector's gain of 1.93% and the S&P 500's loss of 1.49%.
The investment community will be paying close attention to the earnings performance of Realty Income Corp. in its upcoming release. The company is slated to reveal its earnings on August 5, 2026. In that report, analysts expect Realty Income Corp. to post earnings of $1.09 per share. This would mark year-over-year growth of 3.81%. Alongside, our most recent consensus estimate is anticipating revenue of $1.54 billion, indicating a 8.98% upward movement from the same quarter last year.
O's full-year Zacks Consensus Estimates are calling for earnings of $4.45 per share and revenue of $6.27 billion. These results would represent year-over-year changes of +3.97% and +9.03%, respectively.
Investors might also notice recent changes to analyst estimates for Realty Income Corp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. Right now, Realty Income Corp. possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Realty Income Corp. is currently trading at a Forward P/E ratio of 14.72. This denotes a discount relative to the industry average Forward P/E of 15.69.
We can also see that O currently has a PEG ratio of 5.11. 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. As of the close of trade yesterday, the REIT and Equity Trust - Retail industry held an average PEG ratio of 2.63.
The REIT and Equity Trust - Retail industry is part of the Finance sector. With its current Zacks Industry Rank of 65, this industry ranks in the top 27% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
To follow O in the coming trading sessions, be sure to utilize Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).