In the latest close session, Realty Income Corp. (O) was down 1.16% at $56.37. This change lagged the S&P 500's daily loss of 0.74%. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.76%.
The real estate investment trust's shares have seen a decrease of 0.82% over the last month, not keeping up with the Finance sector's gain of 2.1% and the S&P 500's gain of 0.79%.
The investment community will be paying close attention to the earnings performance of Realty Income Corp. in its upcoming release. It is anticipated that the company will report an EPS of $1.08, marking a 2.86% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.46 billion, indicating a 9.14% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.26 per share and a revenue of $5.72 billion, representing changes of +1.67% and +8.49%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Realty Income Corp. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 0.08% higher within the past month. Realty Income Corp. is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Realty Income Corp. is presently being traded at a Forward P/E ratio of 13.37. Its industry sports an average Forward P/E of 13.87, so one might conclude that Realty Income Corp. is trading at a discount comparatively.
It's also important to note that O currently trades at a PEG ratio of 3.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 2.71 based on yesterday's closing prices.
The REIT and Equity Trust - Retail industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 108, placing it within the top 44% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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