Realty Income Corp. (O) closed the most recent trading day at $55.51, moving -1.02% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.11%.
Coming into today, shares of the real estate investment trust had lost 1.02% in the past month. In that same time, the Finance sector lost 1.68%, while the S&P 500 gained 1.46%.
The investment community will be closely monitoring the performance of Realty Income Corp. in its forthcoming earnings report. The company is scheduled to release its earnings on November 2, 2026. The company's earnings per share (EPS) are projected to be $1.11, reflecting a 2.78% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.58 billion, indicating a 7.6% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.44 per share and revenue of $6.3 billion, indicating changes of +3.74% and +9.64%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Realty Income Corp. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.47% higher. At present, Realty Income Corp. boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Realty Income Corp. is presently trading at a Forward P/E ratio of 12.62. For comparison, its industry has an average Forward P/E of 13.77, which means Realty Income Corp. is trading at a discount to the group.
Investors should also note that O has a PEG ratio of 4.38 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. The average PEG ratio for the REIT and Equity Trust - Retail industry stood at 2.14 at the close of the market yesterday.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 87, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Realty Income Corporation (O): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).