Prologis (PLD) closed at $143.47 in the latest trading session, marking a -1.49% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.72%, and the Nasdaq, a tech-heavy index, added 0.21%.
Coming into today, shares of the industrial real estate developer had gained 2.55% in the past month. In that same time, the Finance sector gained 1.12%, while the S&P 500 gained 6.04%.
The investment community will be paying close attention to the earnings performance of Prologis in its upcoming release. The company is predicted to post an EPS of $1.54, indicating a 5.48% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 5.17% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.18 per share and revenue of $8.56 billion, indicating changes of +6.37% and +4.92%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Prologis. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. As of now, Prologis holds a Zacks Rank of #2 (Buy).
In terms of valuation, Prologis is currently trading at a Forward P/E ratio of 23.58. Its industry sports an average Forward P/E of 13.05, so one might conclude that Prologis is trading at a premium comparatively.
It's also important to note that PLD currently trades at a PEG ratio of 3.2. 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 - Other industry had an average PEG ratio of 2.48 as trading concluded yesterday.
The REIT and Equity Trust - Other industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Prologis, Inc. (PLD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).