Realty Income Corp. (O) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Realty Income Corp. (O) closed at $45.62, marking a -1.83% move from the previous day. This change lagged the S&P 500's 2.28% gain on the day. Elsewhere, the Dow gained 2.24%, while the tech-heavy Nasdaq added 1.72%.
Coming into today, shares of the real estate investment trust had lost 40.54% in the past month. In that same time, the Finance sector lost 24.72%, while the S&P 500 lost 16.08%.
Investors will be hoping for strength from O as it approaches its next earnings release. The company is expected to report EPS of $0.86, up 4.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $410.23 million, up 15.76% from the prior-year quarter.
O's full-year Zacks Consensus Estimates are calling for earnings of $3.48 per share and revenue of $1.68 billion. These results would represent year-over-year changes of +4.82% and +12.84%, respectively.
It is also important to note the recent changes to analyst estimates for O. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.98% lower. O currently has a Zacks Rank of #3 (Hold).
Digging into valuation, O currently has a Forward P/E ratio of 13.37. Its industry sports an average Forward P/E of 6.66, so we one might conclude that O is trading at a premium comparatively.
It is also worth noting that O currently has a PEG ratio of 4.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust - Retail industry currently had an average PEG ratio of 2.71 as of yesterday's close.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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