Realty Income Corp. (O) closed the most recent trading day at $60.17, moving +1.2% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.85%. Elsewhere, the Dow saw an upswing of 1.36%, while the tech-heavy Nasdaq appreciated by 0.72%.
Shares of the real estate investment trust have appreciated by 2.69% over the course of the past month, underperforming the Finance sector's gain of 2.7%, and outperforming the S&P 500's gain of 2.38%.
The upcoming earnings release of Realty Income Corp. will be of great interest to investors. The company is predicted to post an EPS of $1.07, indicating a 1.9% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.41 billion, up 5.79% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.26 per share and revenue of $5.6 billion, which would represent changes of +1.67% and +6.14%, respectively, from the prior 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Realty Income Corp. boasts a Zacks Rank of #4 (Sell).
With respect to valuation, Realty Income Corp. is currently being traded at a Forward P/E ratio of 13.95. This expresses a discount compared to the average Forward P/E of 13.99 of its industry.
One should further note that O currently holds a PEG ratio of 4.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. O's industry had an average PEG ratio of 3.13 as of yesterday's close.
The REIT and Equity Trust - Retail industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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