Store Capital (STOR) Gains But Lags Market: What You Should Know

Store Capital (STOR) closed at $31.37 in the latest trading session, marking a +0.03% move from the prior day. The stock lagged the S&P 500's daily gain of 3.06%. Meanwhile, the Dow gained 2.8%, and the Nasdaq, a tech-heavy index, added 0.16%.

Prior to today's trading, shares of the retail real estate investment trust had gained 17.41% over the past month. This has outpaced the Finance sector's loss of 5.47% and the S&P 500's loss of 6.15% in that time.

Investors will be hoping for strength from Store Capital as it approaches its next earnings release. On that day, Store Capital is projected to report earnings of $0.57 per share, which would represent year-over-year growth of 14%. Meanwhile, our latest consensus estimate is calling for revenue of $215.15 million, up 16.88% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.28 per share and revenue of $853.2 million. These totals would mark changes of +21.28% and +17.03%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Store Capital. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Store Capital is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Store Capital is holding a Forward P/E ratio of 13.74. For comparison, its industry has an average Forward P/E of 12, which means Store Capital is trading at a premium to the group.

The REIT and Equity Trust - Retail industry is part of the Finance sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% 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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