In the latest close session, Realty Income Corp. (O) was up +1.64% at $58.29. The stock exceeded the S&P 500, which registered a gain of 0.01% for the day. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq decreased by 0.44%.
The real estate investment trust's stock has climbed by 1.2% in the past month, falling short of the Finance sector's gain of 1.95% and outpacing the S&P 500's gain of 0.86%.
Analysts and investors alike will be keeping a close eye on the performance of Realty Income Corp. in its upcoming earnings disclosure. 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. Simultaneously, our latest consensus estimate expects the revenue to be $1.46 billion, showing a 9.14% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.26 per share and a revenue of $5.72 billion, demonstrating changes of +1.67% and 0%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Realty Income Corp. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% lower. Realty Income Corp. presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Realty Income Corp. is at present trading with a Forward P/E ratio of 13. This indicates a discount in contrast to its industry's Forward P/E of 13.55.
One should further note that O currently holds a PEG ratio of 3.48. 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 - Retail industry stood at 2.62 at the close of the market yesterday.
The REIT and Equity Trust - Retail industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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