Realty Income Corp. (O) closed at $62.72 in the latest trading session, marking a +1.31% move from the prior day. This move outpaced the S&P 500's daily gain of 0.5%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.31%.
Heading into today, shares of the real estate investment trust had lost 0.08% over the past month, lagging the Finance sector's gain of 1.89% and outpacing the S&P 500's loss of 0.23%.
The upcoming earnings release of Realty Income Corp. will be of great interest to investors. The company is predicted to post an EPS of $1.09, indicating a 3.81% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.54 billion, up 8.88% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.44 per share and a revenue of $6.24 billion, signifying shifts of +3.74% and +8.55%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Realty Income Corp. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.42% increase. Realty Income Corp. is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Realty Income Corp. is currently trading at a Forward P/E ratio of 13.95. Its industry sports an average Forward P/E of 15.85, so one might conclude that Realty Income Corp. is trading at a discount comparatively.
Also, we should mention that O has a PEG ratio of 4.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the REIT and Equity Trust - Retail industry had an average PEG ratio of 2.45.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 149, finds itself in the bottom 39% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Realty Income Corporation (O): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).