Here's Why Prologis (PLD) Fell More Than Broader Market

By Zacks Equity Research | December 16, 2025, 6:00 PM

Prologis (PLD) ended the recent trading session at $127.61, demonstrating a -2.33% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.24%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.23%.

Coming into today, shares of the industrial real estate developer had gained 5.78% in the past month. In that same time, the Finance sector gained 3.36%, while the S&P 500 gained 1.31%.

The upcoming earnings release of Prologis will be of great interest to investors. The company's earnings report is expected on January 21, 2026. The company is forecasted to report an EPS of $1.44, showcasing a 4% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.1 billion, up 8.56% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.8 per share and a revenue of $8.17 billion, indicating changes of +4.32% and +8.72%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Prologis. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Prologis currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Prologis is presently being traded at a Forward P/E ratio of 22.51. This represents a premium compared to its industry average Forward P/E of 11.34.

One should further note that PLD currently holds a PEG ratio of 4.01. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.65 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 97, putting it in the top 40% 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.

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).

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