In the latest trading session, Realty Income Corp. (O) closed at $60.85, marking a -1.52% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 0.91%.
Shares of the real estate investment trust have appreciated by 9.03% over the course of the past month, outperforming the Finance sector's gain of 0.37%, and the S&P 500's gain of 0.71%.
The investment community will be paying close attention to the earnings performance of Realty Income Corp. in its upcoming release. In that report, analysts expect Realty Income Corp. to post earnings of $1.08 per share. This would mark year-over-year growth of 2.86%. Simultaneously, our latest consensus estimate expects the revenue to be $1.46 billion, showing a 9.08% escalation compared to the year-ago quarter.
O's full-year Zacks Consensus Estimates are calling for earnings of $4.26 per share and revenue of $5.73 billion. These results would represent year-over-year changes of +1.67% and 0%, respectively.
Investors might also notice recent changes to analyst estimates for Realty Income Corp. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% downward. Realty Income Corp. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Realty Income Corp. is presently being traded at a Forward P/E ratio of 13.97. This indicates a premium in contrast to its industry's Forward P/E of 13.81.
It's also important to note that O currently trades at a PEG ratio of 3.97. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the REIT and Equity Trust - Retail industry was having an average PEG ratio of 2.65.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons of all 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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