The latest trading session saw Prologis (PLD) ending at $107.92, denoting a +1.22% adjustment from its last day's close. This change outpaced the S&P 500's 0.56% loss on the day. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq decreased by 0.51%.
The industrial real estate developer's stock has climbed by 3.41% in the past month, falling short of the Finance sector's gain of 5.39% and the S&P 500's gain of 7.37%.
Investors will be eagerly watching for the performance of Prologis in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.40, showcasing a 4.48% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.98 billion, up 6.97% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.69 per share and revenue of $8.02 billion, indicating changes of +2.34% and +6.71%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Prologis. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% lower. Prologis currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Prologis is holding a Forward P/E ratio of 18.74. This expresses a premium compared to the average Forward P/E of 10.9 of its industry.
We can additionally observe that PLD currently boasts a PEG ratio of 2.71. 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. As of the close of trade yesterday, the REIT and Equity Trust - Other industry held an average PEG ratio of 2.4.
The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 132, putting it in the bottom 47% of all 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.
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Prologis, Inc. (PLD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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