This story originally appeared on Zacks
Realty Income Corp. (O) closed the most recent trading day at $65, moving -1.04% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 2.04%.
Heading into today, shares of the real estate investment trust had lost 8.85% over the past month, lagging the Finance sector’s loss of 1.16% and the S&P 500’s loss of 1.36% in that time.
Wall Street will be looking for positivity from O as it approaches its next earnings report date. On that day, O is projected to report earnings of $0.91 per share, which would represent year-over-year growth of 12.35%. Meanwhile, our latest consensus estimate is calling for revenue of $476.25 million, up 17.72% from the prior-year quarter.
O’s full-year Zacks Consensus Estimates are calling for earnings of $3.57 per share and revenue of $1.94 billion. These results would represent year-over-year changes of +5.31% and +17.6%, respectively.
Investors should also note any recent changes to analyst estimates for O. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. O is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, O is holding a Forward P/E ratio of 18.39. Its industry sports an average Forward P/E of 16.04, so we one might conclude that O is trading at a premium comparatively.
We can also see that O currently has a PEG ratio of 4.21. 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. O’s industry had an average PEG ratio of 2.49 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 54, putting it in the top 22% 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.
To follow O in the coming trading sessions, be sure to utilize Zacks.com.
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