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Realty Income Corp. (O) closed the latest trading day at $53.28, indicating a +1.29% change from the previous session's end. This change outpaced the S&P 500's 1.26% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 1.77%.
The the stock of real estate investment trust has fallen by 6.17% in the past month, lagging the Finance sector's loss of 5.29% and the S&P 500's loss of 2.82%.
Analysts and investors alike will be keeping a close eye on the performance of Realty Income Corp. in its upcoming earnings disclosure. The company is expected to report EPS of $1.06, up 4.95% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.35 billion, up 25.73% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Realty Income Corp. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.12% fall in the Zacks Consensus EPS estimate. Realty Income Corp. is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Realty Income Corp. is currently exchanging hands at a Forward P/E ratio of 12.11. This expresses a discount compared to the average Forward P/E of 14.89 of its industry.
We can also see that O currently has a PEG ratio of 1.88. 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 was holding an average PEG ratio of 2.86 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 66, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.