Realty Income Corp. (O) closed at $57.08 in the latest trading session, marking a -1.55% move from the prior day. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.31%.
The real estate investment trust's shares have seen an increase of 3.24% over the last month, not keeping up with the Finance sector's gain of 3.26% and the S&P 500's gain of 5.05%.
Investors will be eagerly watching for the performance of Realty Income Corp. in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.07, indicating a 0.94% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.39 billion, up 4.09% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.29 per share and revenue of $5.61 billion. These totals would mark changes of +2.39% and +6.48%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Realty Income Corp. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. At present, Realty Income Corp. boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Realty Income Corp. is holding a Forward P/E ratio of 13.51. Its industry sports an average Forward P/E of 13.49, so one might conclude that Realty Income Corp. is trading at a premium comparatively.
Also, we should mention that O has a PEG ratio of 4.05. 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. The REIT and Equity Trust - Retail was holding an average PEG ratio of 2.98 at yesterday's closing price.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 79, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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