In the latest trading session, Realty Income Corp. (O) closed at $60.25, marking a -1.26% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.48% for the day. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 0.64%.
Shares of the real estate investment trust have depreciated by 1.41% over the course of the past month, underperforming the Finance sector's loss of 0.68%, and the S&P 500's loss of 0.97%.
The upcoming earnings release of Realty Income Corp. will be of great interest to investors. The company is expected to report EPS of $1.1, up 1.85% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.58 billion, indicating a 7.19% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.45 per share and a revenue of $6.29 billion, indicating changes of +3.97% and +9.34%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Realty Income Corp. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Currently, Realty Income Corp. is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Realty Income Corp. is holding a Forward P/E ratio of 13.71. This represents a discount compared to its industry average Forward P/E of 14.66.
One should further note that O currently holds a PEG ratio of 4.31. 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 REIT and Equity Trust - Retail was holding an average PEG ratio of 2.32 at yesterday's closing price.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 32% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).