In the latest trading session, Prologis (PLD) closed at $111.97, marking a -1.4% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.27%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.37%.
Prior to today's trading, shares of the industrial real estate developer had gained 9.11% outpaced the Finance sector's gain of 2.38% and the S&P 500's gain of 1.85%.
The upcoming earnings release of Prologis will be of great interest to investors. It is anticipated that the company will report an EPS of $1.44, marking a 0.7% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.09 billion, indicating a 9.97% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.77 per share and revenue of $8.32 billion, which would represent changes of +3.78% and +10.76%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Prologis. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. At present, Prologis boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Prologis is currently trading at a Forward P/E ratio of 19.69. Its industry sports an average Forward P/E of 11.87, so one might conclude that Prologis is trading at a premium comparatively.
It is also worth noting that PLD currently has a PEG ratio of 2.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the REIT and Equity Trust - Other industry stood at 2.57 at the close of the market yesterday.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 41% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Prologis, Inc. (PLD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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