In the latest close session, Prologis (PLD) was up +1.88% at $142.66. The stock exceeded the S&P 500, which registered a loss of 0.54% for the day. Meanwhile, the Dow experienced a rise of 0.03%, and the technology-dominated Nasdaq saw a decrease of 1.18%.
Prior to today's trading, shares of the industrial real estate developer had gained 10.15% outpaced the Finance sector's gain of 0.2% and the S&P 500's gain of 0.58%.
The investment community will be paying close attention to the earnings performance of Prologis in its upcoming release. The company's earnings per share (EPS) are projected to be $1.48, reflecting a 4.23% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.11 billion, indicating a 6.41% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.12 per share and revenue of $8.64 billion, indicating changes of +5.34% and +5.94%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Prologis. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.16% increase. Currently, Prologis is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Prologis is at present trading with a Forward P/E ratio of 22.88. This indicates a premium in contrast to its industry's Forward P/E of 12.21.
One should further note that PLD currently holds a PEG ratio of 3.46. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the REIT and Equity Trust - Other industry had an average PEG ratio of 2.67.
The REIT and Equity Trust - Other industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 38% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Prologis, Inc. (PLD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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