In the latest trading session, Realty Income Corp. (O) closed at $75.90, marking a +0.37% move from the previous day. This change outpaced the S&P 500's 0.49% loss on the day. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.8%.
Heading into today, shares of the real estate investment trust had gained 3.49% over the past month, lagging the Finance sector's gain of 4.31% and outpacing the S&P 500's gain of 3% in that time.
Investors will be hoping for strength from O as it approaches its next earnings release. On that day, O is projected to report earnings of $0.83 per share, which would represent year-over-year growth of 2.47%. Meanwhile, our latest consensus estimate is calling for revenue of $374.14 million, up 10.67% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.29 per share and revenue of $1.48 billion. These totals would mark changes of +3.13% and +11.41%, respectively, from last year.
Any recent changes to analyst estimates for O should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 past month, the Zacks Consensus EPS estimate has moved 0.13% higher. O is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that O has a Forward P/E ratio of 23 right now. This represents a premium compared to its industry's average Forward P/E of 14.04.
Meanwhile, O's PEG ratio is currently 5.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 3.53 based on yesterday's closing prices.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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